a new tax system (goods and services tax) regulations 2019...a new tax system (goods and services...

EXPOSURE DRAFT

EXPOSURE DRAFT

EXPOSURE DRAFT

A New Tax System (Goods and Services Tax)

Regulations 2019

I, General the Honourable Sir Peter Cosgrove AK MC (Ret’d), Governor-General of the

Commonwealth of Australia, acting with the advice of the Federal Executive Council,

make the following regulations.

Dated 2019

Peter Cosgrove

Governor-General

By His Excellency’s Command

Stuart Robert [DRAFT ONLY—NOT FOR SIGNATURE]

Assistant Treasurer

EXPOSURE DRAFT

EXPOSURE DRAFT

A New Tax System (Goods and Services Tax) Regulations 2019 i

Contents

Chapter 1—Introduction 1

Part 1—Preliminary 1 1 Name ........................................................................................................................... 1 2 Commencement .......................................................................................................... 1 3 Authority ..................................................................................................................... 1

Chapter 2—The basic rules 2

Part 2-5—Registration 2

Division 23—Who is required to be registered and who may be registered 2 5 Registration turnover threshold (other than for non-profit bodies) ............................. 2 10 Registration turnover threshold for non-profit bodies ................................................. 2

Part 2-6—Tax periods 3

Division 29—What is attributable to tax periods 3

Subdivision 29-C—Tax invoices and adjustment notes 3 15 Value of taxable supply for which tax invoice not required ........................................ 3 20 Amount for which adjustment note not required ......................................................... 3

Part 2-7—Returns, payments and refunds 4

Division 33—Payments of GST 4 25 Object of this Division ................................................................................................ 4 30 Circumstances in which payments of assessed GST on taxable importations

are deferred ................................................................................................................. 4 35 Payment ...................................................................................................................... 4 40 Application for approval ............................................................................................. 4 45 Requirements for approval .......................................................................................... 4 50 Bank guarantee requirement ....................................................................................... 5 55 Decision on application—notice and date of effect..................................................... 6 60 Revocation of approval ............................................................................................... 6 65 Review of decisions .................................................................................................... 6

Chapter 3—The exemptions 8

Part 3-1—Supplies that are not taxable supplies 8

Division 38—GST-free supplies 8

Subdivision 38-A—Food 8 70 Food additives ............................................................................................................. 8 75 GST-free beverages supplied from vending machines ................................................ 8

Subdivision 38-B—Health 8 80 Medical aids and appliances ....................................................................................... 8

Subdivision 38-E—Exports and other cross-border supplies 9 85 Export of goods by travellers as accompanied baggage .............................................. 9

Division 40—Input taxed supplies 10

Subdivision 40-A—Financial supplies 10 90 Object of Subdivision 40-A .......................................................................................10 95 Acquisition .................................................................................................................10 100 Financial supply providers .........................................................................................10

EXPOSURE DRAFT

EXPOSURE DRAFT

ii A New Tax System (Goods and Services Tax) Regulations 2019

105 Financial supply facilitators .......................................................................................10 110 When supply may be financial supply .......................................................................10 115 What supplies are financial supplies ..........................................................................11 120 Incidental financial supplies .......................................................................................13 125 Examples of supplies that are financial supplies ........................................................13 130 What supplies are not financial supplies ....................................................................13 135 Examples of supplies that are not financial supplies ..................................................15

Chapter 4—The special rules 16

Part 4-1—Special rules mainly about particular ways entities are organised 16

Division 48—GST groups 16

Subdivision 48-A—Formation and membership of GST groups 16 140 Trust distribution and beneficiaries ............................................................................16 145 Membership requirements for partnerships ................................................................16 150 Membership requirements for trusts ..........................................................................17 155 Alternative membership requirements for groups of fixed trusts ...............................18 160 Membership requirements for individuals .................................................................19

Division 51—GST joint ventures 21

Subdivision 51-A—Formation of and participation in GST joint ventures 21 165 Specified purposes for GST joint ventures .................................................................21

Part 4-2—Special rules mainly about supplies and acquisitions 22

Division 70—Financial supplies (reduced credit acquisitions) 22 170 Objects of this Division .............................................................................................22 175 Meaning of closely related .........................................................................................22 180 Acquisitions that attract reduced input tax credits: general ........................................22 185 Acquisitions that attract reduced input tax credits: certain offshore supplies .............27 190 Prohibition against claiming twice .............................................................................30 195 Percentage to which input tax credits are reduced .....................................................30

Division 78—Insurance 31 200 Statutory compensation schemes ...............................................................................31

Division 79—Compulsory third party schemes 33 205 CTP ancillary payment or supply ...............................................................................33

Division 81—Payment of taxes, fees and charges 34 210 Fees and charges which constitute consideration .......................................................34 215 Fees and charges which do not constitute consideration ............................................34 220 Fees and charges covered by sections 210 and 215....................................................35

Part 4-7—Special rules mainly about returns, payments and refunds 36

Division 168—Tourist refund scheme 36

Subdivision 168-A—Kinds of acquisitions 36 225 Acquisition .................................................................................................................36 230 Goods to which this Subdivision applies ...................................................................36 235 Registered entity ........................................................................................................36 240 Purchase price ............................................................................................................36 245 Tax invoice ................................................................................................................36

Subdivision 168-B—Departure from the indirect tax zone 37 250 Leaving the indirect tax zone .....................................................................................37 255 Departure ...................................................................................................................37

EXPOSURE DRAFT

EXPOSURE DRAFT

A New Tax System (Goods and Services Tax) Regulations 2019 iii

260 Place of departure ......................................................................................................37

Subdivision 168-C—Export as accompanied baggage 37 265 Accompanied baggage ...............................................................................................37 270 Time of export ...........................................................................................................37 275 Verification of export .................................................................................................37

Subdivision 168-D—Export by resident of an external Territory as

unaccompanied baggage 38 280 Export of goods to an external Territory ....................................................................38 285 Time of export ...........................................................................................................39 290 Verification of export .................................................................................................39

Subdivision 168-E—Proportion of amount of GST for payment in cash 40 295 Cash payment .............................................................................................................40

Subdivision 168-F—Documentation relating to entitlement to payment 40 300 Payment authority ......................................................................................................40

Subdivision 168-G—Period and manner of payment 40 305 Processing payment authority given to officer of Customs at airport ........................40 310 Processing payment authority lodged at a TRS verification facility ..........................41 315 Processing payment authority given to Comptroller-General of Customs .................41 320 Processing claim for payment ....................................................................................41

Chapter 6—Interpretation 43

Part 6-3—Dictionary in the Act 43

Division 195—Dictionary in the Act 43 325 Compulsory third party schemes ................................................................................43 330 First aid or life saving course .....................................................................................43

Part 6-4—Dictionary 45 335 Definitions .................................................................................................................45

Chapter 7—Transitional 50

Part 7-1—Transitional matters 50

Division 197—Transitional matters relating to the repeal of the A New Tax

System (Goods and Services Tax) Regulations 1999 50 340 Definitions .................................................................................................................50 345 Old regulations continue to apply to tax periods starting before

commencement time ..................................................................................................50 350 Approved forms .........................................................................................................50 355 Deferred payments of assessed GST on taxable importations ....................................50 360 Tourist refund scheme ................................................................................................51

Schedule 1—Rules for the supply of goods to a relevant traveller 52 1 Purpose of this Schedule ............................................................................................52 2 Sealed bag rules .........................................................................................................52 3 Sealed bag rules for liquids, aerosols, gels, creams and pastes ..................................55 4 Customs barrier rules .................................................................................................57 5 Forms of invoice and receipt ......................................................................................58 6 Employees or agents may meet requirements ............................................................59

Schedule 2—Examples of financial supply 60 1 Examples for item 1 of the table in subsection 115(3) ...............................................60

EXPOSURE DRAFT

EXPOSURE DRAFT

iv A New Tax System (Goods and Services Tax) Regulations 2019

2 Examples for item 2 of the table in subsection 115(3) ...............................................60 3 Examples for item 3 of the table in subsection 115(3) ...............................................61 4 Examples for item 6 of the table in subsection 115(3) ...............................................61 5 Examples for item 7 of the table in subsection 115(3) ...............................................62 6 Examples for item 8 of the table in subsection 115(3) ...............................................62 7 Examples for item 9 of the table in subsection 115(3) ...............................................62 8 Examples for item 10 of the table in subsection 115(3) .............................................62 9 Examples for item 11 of the table in subsection 115(3) .............................................63 10 Examples for item 12 of the table in subsection 115(3) .............................................63

Schedule 3—Examples of supply that is not financial supply 65 1 Examples for item 3 of the table in section 130 .........................................................65 2 Examples for item 4 of the table in section 130 .........................................................65 3 Examples for item 7 of the table in section 130 .........................................................66 4 Examples for item 10 of the table in section 130 .......................................................66 5 Examples for item 12 of the table in section 130 .......................................................66 6 Examples for item 15 of the table in section 130 .......................................................67 7 Examples for item 20 of the table in section 130 .......................................................67

EXPOSURE DRAFT

EXPOSURE DRAFT

Introduction Chapter 1

Preliminary Part 1

Section 1

A New Tax System (Goods and Services Tax) Regulations 2019 1

Chapter 1—Introduction

Part 1—Preliminary

1 Name

This instrument is the A New Tax System (Goods and Services Tax) Regulations

2019.

2 Commencement

(1) Each provision of this instrument specified in column 1 of the table commences,

or is taken to have commenced, in accordance with column 2 of the table. Any

other statement in column 2 has effect according to its terms.

Commencement information

Column 1 Column 2 Column 3

Provisions Commencement Date/Details

1. The whole of this

instrument

1 April 2019. 1 April 2019

Note: This table relates only to the provisions of this instrument as originally made. It will

not be amended to deal with any later amendments of this instrument.

(2) Any information in column 3 of the table is not part of this instrument.

Information may be inserted in this column, or information in it may be edited, in

any published version of this instrument.

3 Authority

This instrument is made under the A New Tax System (Goods and Services Tax)

Act 1999.

EXPOSURE DRAFT

EXPOSURE DRAFT

Chapter 2 The basic rules

Part 2-5 Registration

Division 23 Who is required to be registered and who may be registered

Section 5

2 A New Tax System (Goods and Services Tax) Regulations 2019

Chapter 2—The basic rules

Part 2-5—Registration

Division 23—Who is required to be registered and who may be

registered

5 Registration turnover threshold (other than for non-profit bodies)

For the purposes of paragraph 23-15(1)(b) of the Act, the amount of $75,000 is

specified.

10 Registration turnover threshold for non-profit bodies

For the purposes of paragraph 23-15(2)(b) of the Act, the amount of $150,000 is

specified.

EXPOSURE DRAFT

EXPOSURE DRAFT

The basic rules Chapter 2

Tax periods Part 2-6

What is attributable to tax periods Division 29

Section 15


Part 2-6—Tax periods

Division 29—What is attributable to tax periods

Subdivision 29-C—Tax invoices and adjustment notes

15 Value of taxable supply for which tax invoice not required

For the purposes of subsection 29-80(1) of the Act, the amount of $75 is

specified.

20 Amount for which adjustment note not required

For the purposes of subsection 29-80(2) of the Act, the amount of $75 is

specified.

EXPOSURE DRAFT

EXPOSURE DRAFT


Part 2-7 Returns, payments and refunds

Division 33 Payments of GST

Section 25


Part 2-7—Returns, payments and refunds

Division 33—Payments of GST

25 Object of this Division

The object of this Division is to provide for the deferral of payments of amounts

of assessed GST on taxable importations.

30 Circumstances in which payments of assessed GST on taxable importations

are deferred

For the purposes of paragraph 33-15(1)(b) of the Act, amounts of assessed GST

on taxable importations are to be paid in accordance with section 35 of this

instrument if both of the following requirements are met:

(a) GST returns in relation to the importer are lodged with the Commissioner

in the approved form;

(b) either:

(i) the goods in question are entered for home consumption (within the

meaning of the Customs Act 1901) by computer and the importer is an

approved entity at the time of the taxable importation; or

(ii) the goods in question are taken to have been entered for home

consumption for the purposes of the A New Tax System (Goods and

Services Tax) Act 1999 under subsection 105D(2) of the Customs Act

1901 and the importer is an approved entity at that time.

35 Payment

(1) An amount of assessed GST on a taxable importation that is payable by an

approved entity must be paid to the Commissioner on or before the 21st day after

the end of the month in which the liability for the assessed GST arose.

(2) Amounts of assessed GST must be paid by electronic payment.

40 Application for approval

An entity may apply to the Commissioner in the approved form for approval to

make deferred payments of assessed GST on taxable importations.

45 Requirements for approval

(1) The Commissioner must, in writing, approve an application by an entity if the

Commissioner is satisfied that:

(a) the entity is registered under Part 2-5 of the Act; and

(b) the entity has an ABN; and

(c) if the entity is an individual—the entity is not an undischarged bankrupt;

and

EXPOSURE DRAFT

EXPOSURE DRAFT


Returns, payments and refunds Part 2-7

Payments of GST Division 33

Section 50


(d) the tax period applying to the entity is each individual month; and

(e) if the entity is a member (but not the representative member) of a GST

group—the representative member of the group is an approved entity; and

(f) the bank guarantee (if any) required under section 50 has been provided;

and

(g) the entity will be able to meet the requirements in sections 30 and 35; and

(h) it would not be appropriate to refuse the application under subsection (2),

(3) or (4) of this section.

(2) The Commissioner may refuse the application if the entity is a Chapter 5 body

corporate (within the meaning of section 9 of the Corporations Act 2001).

(3) The Commissioner may refuse the application if, in the period of 3 years before

the date of the application:

(a) the entity; or

(b) if the entity is not an individual—an individual who is relevant to the

entity’s application;

has been convicted by a court, whether in Australia or in another country, of an

offence in relation to taxation requirements, customs requirements, the

misdescription of goods, trade practices, fair trading or the defrauding of a

government.

Note: Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances,

relieve persons from the requirement to disclose spent convictions and require persons

aware of such convictions to disregard them.

(4) The Commissioner may refuse the application if the entity, or any of its related

entities, has:

(a) an outstanding tax-related liability (within the meaning of section 995-1 of

the Income Tax Assessment Act 1997); or

(b) a return outstanding under a taxation law.

50 Bank guarantee requirement

(1) If:

(a) an entity applies for approval; and

(b) a previous approval of the entity has been revoked under section 60 of this

instrument or regulation 33-15.08 of the A New Tax System (Goods and

Services Tax) Regulations 1999;

the Commissioner may require the entity to provide a bank guarantee in relation

to the payment of deferred payments of assessed GST on taxable importations.

(2) The guarantee must provide that, if an amount of assessed GST on taxable

importations is not paid to the Commissioner on or before the day mentioned in

subsection 35(1), the bank will pay to the Commissioner the lesser of:

(a) the overdue amount; and

(b) the guarantee amount worked out under subsection (3) of this section.

(3) The guarantee amount is 1.5 times the highest monthly amount of assessed GST

on taxable importations that was payable by the entity:

EXPOSURE DRAFT

EXPOSURE DRAFT


Part 2-7 Returns, payments and refunds

Division 33 Payments of GST

Section 55


(a) in the 12 months before the application mentioned in paragraph (1)(a) was

made; or

(b) if no monthly amounts of assessed GST on taxable importations were

payable in that 12 months—in the 12 months before the previous approval

was revoked.

55 Decision on application—notice and date of effect

(1) If the Commissioner approves an entity’s application, the Commissioner must

give the entity written notice of the approval.

(2) The approval takes effect on the day specified in the approval.

(3) If the Commissioner refuses an entity’s application, the Commissioner must give

the entity written notice of the refusal.

(4) The notice must:

(a) state the reasons for the refusal; and

(b) state that the entity has a right under section 65 to object against the

decision.

60 Revocation of approval

(1) The Commissioner may, in writing, revoke an entity’s approval if the

Commissioner is satisfied that:

(a) the entity no longer meets the requirements for approval in section 45; or

(b) the bank guarantee (if any) provided by the entity under section 50 has

lapsed; or

(c) the entity has failed to meet a requirement in section 30 or 35; or

(d) the entity is liable to pay general interest charge on an amount; or

(e) the entity is being prosecuted for, or has been convicted of, an offence

under Part III of the Taxation Administration Act 1953.

(2) The revocation takes effect on the day specified in the revocation.

(3) If the Commissioner revokes an entity’s approval, the Commissioner must give

the entity written notice of the revocation.

(4) The notice must:

(a) state the reasons for the revocation; and

(b) state that the entity has a right under section 65 to object against the

decision.

65 Review of decisions

An entity that is dissatisfied with a decision of the Commissioner to:

(a) refuse an application by the entity under section 45; or

(b) require the entity to provide a bank guarantee under section 50; or

(c) revoke an approval of the entity under section 60;

EXPOSURE DRAFT

EXPOSURE DRAFT


Returns, payments and refunds Part 2-7

Payments of GST Division 33

Section 65


may object against the decision in the manner set out in Part IVC of the Taxation

Administration Act 1953.

EXPOSURE DRAFT

EXPOSURE DRAFT

Chapter 3 The exemptions

Part 3-1 Supplies that are not taxable supplies

Division 38 GST-free supplies

Section 70


Chapter 3—The exemptions

Part 3-1—Supplies that are not taxable supplies

Division 38—GST-free supplies

Subdivision 38-A—Food

70 Food additives

(1) For the purposes of paragraph 38-3(1)(e) of the Act, food additives other than

exempt food additives are specified.

(2) Each of the following is an exempt food additive:

(a) a food additive which, at the time of supply is packaged and marketed for

retail sale;

(b) a food additive which, at the time of supply:

(i) has a measurable nutritional value; and

(ii) is supplied for use solely or predominantly in the composition of food;

and

(iii) is essential to the composition of that food.

75 GST-free beverages supplied from vending machines

For the purposes of subsection 38-3(2) of the Act, section 38-3 of the Act does

not apply to a supply of a beverage that:

(a) is specified in the third column (which is headed “Beverages”) of the table

in clause 1 of Schedule 2 to the Act; and

(b) apart from this section, would not be GST-free; and

(c) is supplied on premises from a vending machine for consumption on the

premises.

Subdivision 38-B—Health

80 Medical aids and appliances

(1) For the purposes of paragraph 38-45(1)(a) of the Act, supplies of the medical

aids and appliances mentioned in the following table are specified.

Medical aids and appliances

Item Category Medical aid or appliance

1 Advanced wound care (a) alginate; and

(b) hydro colloids; and

(c) hydro gel; and

(d) polyurethane film; and

EXPOSURE DRAFT

EXPOSURE DRAFT

The exemptions Chapter 3

Supplies that are not taxable supplies Part 3-1

GST-free supplies Division 38

Section 85


Medical aids and appliances

Item Category Medical aid or appliance

(e) polyurethane foam

2 Communication aids for people with

disabilities

(a) tracheostomy appliances and

accessories; and

(b) laryngotomy appliances and accessories

3 Continence skin bond

4 Daily living for people with disabilities (a) artificial ears; and

(b) nose prostheses

5 Hearing/speech hearing loops

6 Infusion systems for the delivery of a

measured dose of a medication

(a) infusion sets; and

(b) infusion pumps

7 Mobility of people with disabilities—

physical: orthoses

compression garments


physical: prostheses

supplements and aids associated with

mammary prostheses


physical: seating aids

postural support seating


physical: walking aids

accessories associated with walking frames

or specialised ambulatory ortheses

11 Personal hygiene for people with disabilities customised modifications and accessories

for the aids or appliances mentioned in

items 111 to 121 of Schedule 3 to the Act

12 Respiratory appliances tilt tables

13 Stoma stoma products including all bags and

related equipment for patients with

urostomies

(2) Section 182-15 of the Act applies in relation to the second column of the table in

subsection (1) of this section as if that column were the second column of the

table in Schedule 3 to the Act.

Note: The second column in the table in subsection (1) of this section and the second column

of the table in Schedule 3 to the Act are both headed “Category”.

Subdivision 38-E—Exports and other cross-border supplies

85 Export of goods by travellers as accompanied baggage

Schedule 1 specifies rules for the purposes of item 7 of the table in

subsection 38-185(1) of the Act.

EXPOSURE DRAFT

EXPOSURE DRAFT



Division 40 Input taxed supplies

Section 90


Division 40—Input taxed supplies

Subdivision 40-A—Financial supplies

90 Object of Subdivision 40-A

The object of this Subdivision is to identify supplies that are financial supplies.

Note 1: For the meaning of supply, see section 9-10 of the Act.

Note 2: Subsection 40-5(2) of the Act provides that financial supply has the meaning given by

this instrument.

95 Acquisition

In this Division, acquisition, in relation to the provision or disposal of an

interest, includes acceptance and receipt of the interest.

100 Financial supply providers

(1) An entity, in relation to the supply of an interest that was:

(a) immediately before the supply, the property of the entity; or

(b) created by the entity in making the supply;

is the financial supply provider of the interest.

Note 1: Examples of interests to which paragraph (a) applies are:

(a) a share or bond that is sold; and

(b) rights assigned under a derivative.

Note 2: Examples of interests to which paragraph (b) applies are:

(a) a share or bond that is issued; and

(b) a derivative that is entered into.

(2) The entity that acquires that interest is also the financial supply provider of the

interest.

105 Financial supply facilitators

A financial supply facilitator, in relation to the supply of an interest, is an entity

facilitating the supply of the interest for a financial supply provider.

110 When supply may be financial supply

For the purposes of subsection 40-5(2) of the Act, a supply is a financial supply

if:

(a) the supply is a financial supply under section 115 and is not excluded by

section 130; or

(b) the supply is an incidental financial supply under section 120.

EXPOSURE DRAFT

EXPOSURE DRAFT



Input taxed supplies Division 40

Section 115


115 What supplies are financial supplies

(1) The provision, acquisition or disposal of an interest mentioned in subsection (3)

is a financial supply if:

(a) the provision, acquisition or disposal is:

(i) for consideration; and

(ii) in the course or furtherance of an enterprise; and

(iii) connected with the indirect tax zone; and

(b) the supplier is:

(i) registered or required to be registered; and

(ii) a financial supply provider in relation to supply of the interest.

(2) However, if Division 84 (offshore supplies) of the Act applies to the provision,

acquisition or disposal of an interest mentioned in subsection (3), the provision,

acquisition or disposal is a financial supply to the extent that it would, apart from

subparagraphs (1)(a)(iii) and (b)(i), be a financial supply.

(3) For the purposes of subsections (1) and (2), the interest is an interest in or under

a matter mentioned in an item in the following table.

Financial supplies

Item An interest in or under …

1 An account made available by an Australian ADI in the course of:

(a) its banking business within the meaning of the Banking Act 1959; or

(b) its State banking business

2 A debt, credit arrangement or right to credit, including a letter of credit

3 A charge or mortgage over real or personal property

4 A regulated superannuation fund, an approved deposit fund, a pooled superannuation trust

or a public sector superannuation scheme within the meaning of the Superannuation

Industry (Supervision) Act 1993, or a retirement savings account within the meaning of the

Retirement Savings Accounts Act 1997

5 An annuity or allocated pension

6 A life insurance business (within the meaning of the Life Insurance Act 1995):

(a) which consists of the issuing of policies to which subsection 9(1) of that Act applies; or

(b) to which a declaration under subsection 12(2) or section 12A of that Act applies;

or related reinsurance business

7 A guarantee

8 An indemnity that holds a person harmless from any loss as a result of a transaction the

person enters with a third party

9 Credit under a hire purchase agreement entered into before 1 July 2012 in relation to goods,

if:

(a) the credit for the goods is provided for a separate charge; and

(b) the charge is disclosed to the recipient of the goods

10 Australian currency, the currency of a foreign country, digital currency or an agreement to

buy or sell any of these 3 things

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 115


Financial supplies

Item An interest in or under …

11 Securities, including:

(a) a debenture described in paragraph (a), (b), (c), (e) or (f) of the definition of debenture

in section 9 of the Corporations Act 2001; and

(b) a document issued by an individual that would be a debenture if it were issued by a

body corporate; and

(c) a scheme described in paragraph (e), (i) or (m) of the definition of managed investment

scheme in section 9 of the Corporations Act 2001; and

(d) the capital of a partnership or trust

12 A derivative

13 An account made available by a non-resident in the course of carrying on banking business

(within the meaning of the Banking Act 1959) in a foreign country in which the entity is

authorised under the law of that country to carry on banking business

14 A foreign superannuation fund (within the meaning of the Income Tax Assessment Act

1997)

Note 1: If something is within the scope of both an item in the table in this subsection and an

item in the table in section 130, it will not be a financial supply (see paragraph 110(a)).

Note 2: Subparagraph (1)(b)(ii) has the effect that a supply by a financial supply facilitator is

not a financial supply.

Note 3: Supply of something that is mentioned in more than one item in the table in this

subsection will still be a financial supply.

(4) A supply by an Australian ADI for a fee of not more than $1,000 is a financial

supply if:

(a) item 1 of the table in subsection (3) does not apply to the supply because

the recipient of the supply does not have an account with the ADI but the

item would have applied to the supply if the recipient had an account with

the ADI; or

(b) the fee relates to an application to the ADI that, if accepted, would result in

the creation of an account by the ADI.

Example 1: For paragraph (a), electronic transfer to another Australian ADI for a person who does

not hold an account with the ADI.

Example 2: For paragraph (b), a loan application fee.

(5) A supply by an entity for a fee of not more than $1,000 is a financial supply if it

is a supply of one or more of the following ATM services:

(a) a withdrawal from an account;

(b) a deposit into an account;

(c) an electronic transfer from an account;

(d) advice of the balance of an account.

(6) A reference in item 11 of the table in subsection (3) to a security does not include

a security in relation to which an entity is given a right to participate in a barter

scheme under which each participant may obtain goods or services from another

participant for consideration that is wholly or substantially in kind rather than in

cash.

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 120


120 Incidental financial supplies

If something is supplied by an entity to a recipient directly in connection with a

financial supply to the recipient by the entity, the thing is an incidental financial

supply if:

(a) it is incidental to the financial supply; and

(b) it and the financial supply are supplied, at or about the same time, but not

for separate consideration; and

(c) it is the usual practice of the entity to supply the thing, or similar things,

and the financial supply together in the ordinary course of the entity’s

enterprise.

Note: Section 130 does not apply in relation to incidental financial supplies. As a result, if

something is both an incidental financial supply and within the scope of an item in the

table in section 130, it will still be a financial supply.

Example: Advice, for which a separate charge is not made, in relation to a housing loan.

125 Examples of supplies that are financial supplies

(1) Schedule 2 sets out examples of supplies that relate to matters mentioned in the

table in subsection 115(3).

(2) If an example in Schedule 2 is inconsistent with any other provision of this

instrument, the provision prevails.

Note 1: The examples are not to be taken as exhaustive. See section 15AD of the Acts

Interpretation Act 1901.

Note 2: Something that is within the scope of an item in the table in subsection 115(3) can be a

financial supply even if it is not mentioned as an example in Schedule 2.

130 What supplies are not financial supplies

For the purposes of subsection 40-5(2) of the Act, a supply mentioned in

section 115 of this instrument is not a financial supply if it is the supply of

something, or an interest in or under something, that is mentioned in an item in

the following table.

Supplies that are not financial supplies

Item Supply of, or supply of an interest in or under …

1 Cheque and deposit forms and books supplied to an Australian ADI in connection with an

account mentioned in item 1 of the table in subsection 115(3)

2 Special forms, or overprinting of standard forms, by an Australian ADI to the requirements

of particular account holders in connection with an account mentioned in item 1 of the table

in subsection 115(3)

3 Professional services, including information and advice, in relation to a financial supply

4 A payment system, except to the extent that it is digital currency

5 Stored value facility cards and prepayments not linked to accounts provided by an

Australian ADI in connection with an account mentioned in item 1 of the table in

subsection 115(3)

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 130


Supplies that are not financial supplies

Item Supply of, or supply of an interest in or under …

6 Goods in accordance with agreements under which the goods are supplied under a lease, if:

(a) the lessees have no obligation or option to acquire the rights of the lessors in the goods;

or

(b) the lessors dispose of their rights in the goods to the lessees

7 An option, right or obligation to make a taxable supply or acquire something the supply of

which is a taxable supply, except a mortgage or charge mentioned in item 3 of the table in

subsection 115(3)

8 A supply made as a result of the exercise of an option or right, or the performance of an

obligation, to make taxable supply or acquire something the supply of which is a taxable

supply, including an option, right or obligation under a mortgage or charge mentioned in

item 3 of the table in subsection 115(3)

9 Facilities for:

(a) trading securities or derivatives; and

(b) clearance and settlement of those trades

10 Insurance and reinsurance business, except life insurance business mentioned in item 6 of

the table in subsection 115(3)

11 Broking services

12 Management of the assets or liabilities of another entity, including investment portfolio

management and administration services for trusts or superannuation, pension or annuity

funds

13 Debt collection services

14 Sales accounting services under a factoring arrangement, or an arrangement having the

same effect as a factoring arrangement

15 Trustee services

16 Custodian services in relation to money, digital currency, documents and other things

17 Australian currency, or the currency of a foreign country, the market value of which

exceeds its stated value as legal tender, or an agreement to buy or sell currency of either

kind the market value of which exceeds its stated value as legal tender

18 An arrangement for the provision of goods to an entity for display or demonstration

pending disposal of the goods to a third party

19 Goods supplied under a hire purchase agreement entered into on or after 1 July 2012

20 Credit under a hire purchase agreement entered into on or after 1 July 2012

21 A warranty for goods

Note 1: If something is within the scope of both an item in the table in subsection 115(3) and an

item in the table in this section, it will not be a financial supply (see paragraph 110(a)).

Note 2: This section does not apply in relation to incidental financial supplies. As a result, if

something is both an incidental financial supply and within the scope of an item in the

table in this section, it will still be a financial supply.

Note 3: Sections 7-1 and 9-70 of the Act, and this section in respect of items 7 and 8 of the

table in this section, have the effect that GST is payable on the premium (if any) on a

taxable deliverable commodity derivative and the price on settlement when the

commodity is delivered.

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 135


135 Examples of supplies that are not financial supplies

(1) Schedule 3 sets out examples of supplies mentioned in section 130.

(2) If an example in Schedule 3 is inconsistent with any other provision of this

instrument, the provision prevails.

Note: The examples are not to be taken as exhaustive. See section 15AD of the Acts

Interpretation Act 1901.

EXPOSURE DRAFT

EXPOSURE DRAFT

Chapter 4 The special rules

Part 4-1 Special rules mainly about particular ways entities are organised

Division 48 GST groups

Section 140


Chapter 4—The special rules

Part 4-1—Special rules mainly about particular ways

entities are organised

Division 48—GST groups

Subdivision 48-A—Formation and membership of GST groups

140 Trust distribution and beneficiaries

For the purposes of this Subdivision, if the trustee of a trust distributes income or

capital of the trust in such a way that another entity receives the income or

capital indirectly through one or more interposed trusts or companies:

(a) the trustee is taken also to distribute the income or capital to the other

entity; and

(b) the other entity is taken also to be a beneficiary of the trust.

145 Membership requirements for partnerships

(1) For the purposes of subparagraph 48-10(1)(a)(ii) of the Act, this section sets out

the requirements that a partnership must satisfy.

Note: The partnership must also satisfy other membership requirements set out in

section 48-10 of the Act.

(2) If the GST group or proposed GST group includes entities other than

partnerships, the partnership must satisfy the requirements of subsection (4), (5),

(6) or (7).

(3) If the GST group or proposed GST group consists only of partnerships:

(a) there are no further requirements for one of the partnerships; and

(b) each other partnership must satisfy the requirements of subsection (7).

Requirements that may be satisfied

(4) The partnership satisfies the requirements of this subsection if, for at least one

company that is a member of the GST group or proposed GST group:

(a) the partnership has at least a 90% stake in the company (worked out in

accordance with section 190-5 of the Act as if the partnership were a

company); or

(b) shares of the company are held in such a way that:

(i) if there is one shareholder—the shareholder is an associated person in

relation to a partner in the partnership; and

(ii) if there is more than one shareholder—at least 2 shareholders are

associated persons in relation to different partners in the partnership.

EXPOSURE DRAFT

EXPOSURE DRAFT

The special rules Chapter 4

Special rules mainly about particular ways entities are organised Part 4-1

GST groups Division 48

Section 150


(5) The partnership satisfies the requirements of this subsection if each partner in the

partnership is:

(a) an individual who is a member of the GST group or proposed GST group;

or

(b) a family member of such an individual.

(6) The partnership satisfies the requirements of this subsection if, for at least one

trust that is a member of the GST group or proposed GST group, the

beneficiaries include at least 2 persons who are associated persons in relation to

different partners in the partnership.

(7) The partnership (the candidate partnership) satisfies the requirements of this

subsection if:

(a) there is a partnership (the member partnership) that is a member of the

GST group or proposed GST group because of:

(i) paragraph (3)(a) or subsection (4), (5) or (6); or

(ii) this subsection, including the repeated application of this subsection;

and

(b) each partner in the candidate partnership is an individual, a family trust of

an individual or a family company of an individual; and

(c) for each partner in the candidate partnership that is an individual, a family

trust of an individual or a family company of an individual, one of the

following is a partner in the member partnership:

(i) the individual;

(ii) a family trust of the individual;

(iii) a family company of the individual;

(iv) a family member of the individual;

(v) another individual for whom the first individual is a family member;

(vi) a family trust of a family member mentioned in subparagraph (iv) or

the other individual mentioned in subparagraph (v);

(vii) a family company of a family member mentioned in subparagraph (iv)

or the other individual mentioned in subparagraph (v); and

(d) at least 2 of the partners in the candidate partnership comply with

paragraph (c) through different partners in the member partnership

(whether or not they also comply through the same partner in the member

partnership).

150 Membership requirements for trusts

(1) For the purposes of subparagraph 48-10(1)(a)(ii) of the Act, the following are the

requirements that a trust must satisfy:

(a) if the GST group or proposed GST group consists only of fixed trusts—

either the requirement set out in subsection (2) or the alternative

requirements set out in section 155;

(b) in any other case—the requirement set out in subsection (2).

Note: The trust must also satisfy other membership requirements set out in section 48-10 of

the Act.

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 155



(2) One of the following must be satisfied for the trustee of the trust (the candidate

trustee):

(a) the candidate trustee has at least a 90% stake in a company that is a

member of the GST group or proposed GST group (worked out in

accordance with section 190-5 of the Act as if the trustee were a company);

(b) the candidate trustee distributes any income or capital of the trust only to

beneficiaries that are permitted beneficiaries (whether or not other

distributions could lawfully be made);

(c) the candidate trustee is the sole beneficiary of any distribution of income or

capital by the trustee of another trust that is a member of the GST group or

proposed GST group;

(d) the candidate trustee distributes income or capital of the trust, and the

trustee of another trust that is a member of the GST group or proposed

GST group distributes income or capital of the other trust, only to persons

who are all family members of the same individual (whether or not other

distributions could lawfully be made).

Note: Distributions to beneficiaries may be direct or indirect (section 140).

(3) Each of the following is a permitted beneficiary:

(a) a company that is a member of the GST group or proposed GST group;

(b) an endorsed charity or a gift-deductible entity;

(c) an individual who is a member of the GST group or proposed GST group;

(d) a family member of an individual who is a member of the GST group or

proposed GST group;

(e) a trustee of a trust that is a member of the GST group or proposed GST

group.

(4) For a company that is a member of the GST group or proposed GST group, each

associated person in relation to a shareholder of the company is also a permitted

beneficiary if:

(a) for a company with one shareholder—the beneficiaries of the trust include

an associated person in relation to the shareholder; and

(b) for a company with more than one shareholder—the beneficiaries of the

trust include at least 2 beneficiaries who are associated persons in relation

to different shareholders.

(5) For a partnership that is a member of the GST group or proposed GST group,

each associated person in relation to a partner in the partnership is also a

permitted beneficiary if the beneficiaries of the trust include at least 2

beneficiaries who are associated persons in relation to different partners.

155 Alternative membership requirements for groups of fixed trusts

(1) This section sets out the alternative requirements mentioned in

paragraph 150(1)(a) for a trust to satisfy in relation to a GST group or proposed

GST group that consists only of fixed trusts.

EXPOSURE DRAFT

EXPOSURE DRAFT



GST groups Division 48

Section 160


Note: The fixed trust must also satisfy other membership requirements set out in


(2) The fixed trust must be a member of the same 90% owned trust group as all other

fixed trusts in that group.

(3) For the purposes of this section:

(a) two fixed trusts are members of the same 90% owned trust group if:

(i) the trustee of one of the trusts has at least a 90% trust stake in the

other trust; or

(ii) the trustee of a third trust has at least a 90% trust stake in each of the 2

trusts; and

(b) the trustee of a fixed trust (the head trust) has at least a 90% trust stake in

another fixed trust (the sub-trust) if the trustee:

(i) owns at least 90% of the issued units in the sub-trust (whether directly

or indirectly through one or more interposed trusts or companies); and

(ii) has the right to receive at least 90% of any distribution of capital or

income of the sub-trust.

160 Membership requirements for individuals

(1) For the purposes of subparagraph 48-10(1)(a)(ii) of the Act, this section sets out

the requirements that an individual must satisfy.

Note: The individual must also satisfy other membership requirements set out in


(2) The individual must satisfy the requirements of subsection (3), (4) or (5).


(3) The individual satisfies the requirements of this subsection if, for at least one

company that is a member of the GST group or proposed GST group:

(a) the individual has at least a 90% stake in the company (worked out in

accordance with section 190-5 of the Act as if the individual were a

company); or

(b) each shareholder of the company is either the individual or a family

member of the individual.


partnership that is a member of the GST group or proposed GST group, the

partners of the partnership are:

(a) the individual and one or more family members of the individual; or

(b) family members of the individual.


trust that is a member of the GST group or proposed GST group:

(a) the beneficiaries of the trust include either or both of the individual and

family members of the individual; and

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 160


(b) the trustee of the trust distributes income or capital of the trust only to

permitted beneficiaries.

EXPOSURE DRAFT

EXPOSURE DRAFT



GST joint ventures Division 51

Section 165


Division 51—GST joint ventures

Subdivision 51-A—Formation of and participation in GST joint ventures

165 Specified purposes for GST joint ventures

(1) For the purposes of paragraph 51-5(1)(a) of the Act, each of the following

purposes are specified:

(a) research and development;

(b) the provision of insurance, other than life insurance;

(c) fishing;

(d) agriculture;

(e) cultivation, or exploitation, of timber;

(f) design, or building, or maintenance, of residential or commercial premises;

(g) civil engineering, including the design, construction and maintenance of

roads, railways, bridges, canals, dams, ports, harbours, airports and similar

installations;

(h) generation, or transmission, or distribution, of electricity;

(i) transmission, or distribution, of water;

(j) receipt, or storage, or distribution, of oil and gas products;

(k) refining, or processing, of oil and gas products;

(l) beneficiation of minerals and primary metal production, including alloy

production;

(m) charitable activities;

(n) transportation.

(2) If a joint venture is a joint venture for more than one of the purposes specified in

subsection (1) or paragraph 51-5(1)(a) of the Act, the combination of those

purposes is specified as a purpose.

EXPOSURE DRAFT

EXPOSURE DRAFT


Part 4-2 Special rules mainly about supplies and acquisitions

Division 70 Financial supplies (reduced credit acquisitions)

Section 170


Part 4-2—Special rules mainly about supplies and

acquisitions

Division 70—Financial supplies (reduced credit acquisitions)

170 Objects of this Division

The objects of this Division are:

(a) to specify the kind of acquisitions that relate to making financial supplies

that can give rise to an entitlement to a reduced input tax credit; and

(b) to specify the percentage to which the input tax credit is reduced.

175 Meaning of closely related

An enterprise is closely related to another enterprise if any of the following

conditions apply:

(a) both enterprises are carried on by the same entity;

(b) one enterprise is carried on by a 100% subsidiary of the entity that carries

on the other enterprise;

(c) both enterprises are carried on by 100% subsidiaries of the same entity.

180 Acquisitions that attract reduced input tax credits: general

(1) For the purposes of subsection 70-5(1) of the Act, an acquisition mentioned in

the following table that relates to making financial supplies can give rise to an

entitlement to a reduced input tax credit.

Reduced credit acquisitions—general

Item Acquisition

Transaction banking and cash management services

1 The service of opening, issuing, closing, operating, maintaining or performing a transaction

in respect of an account by a financial supply facilitator, including by using the following

facilities:

(a) telephone banking;

(b) internet banking;

(c) Bank@Post

2 Processing services in relation to account information for account providers, including the

following:

(a) archives storage, retrieval and destruction services;

(b) statement processing and bulk mailing;

(c) processing and manipulation of information relating to accounts, including information

about transactions to which item 7 applies

3 Acquisition of transaction cards by card account providers

4 Acquisition of passbooks, deposit and withdrawal forms and cheques and chequebooks by

EXPOSURE DRAFT

EXPOSURE DRAFT


Special rules mainly about supplies and acquisitions Part 4-2

Financial supplies (reduced credit acquisitions) Division 70

Section 180



Item Acquisition

account providers

5 Processing services in relation to account applications for account providers, including

providing credit reference and credit scoring assessments

Payment and fund transfers services

6 Supplies to which the following payment system fees relate:

(a) fees charged by the operator of a payment system to a participant in the system;

(b) fees charged by a participant in a payment system to a third party in relation to access to

the system;

(c) fees charged between participants in a payment system

7 Processing, settling, clearing and switching transactions of the following kinds:

(a) direct credit and debit;

(b) other credit and debit transactions;

(c) charge, credit and debit card transactions;

(d) cheque;

(e) electronic funds transfer;

(f) ATM;

(g) BPAY;

(h) internet banking;

(i) Bank@Post;

(j) the SWIFT (Society for Worldwide Interbank Financial Telecommunications) Payment

Delivery System

8 Services to a third party mentioned in paragraph (b) in item 6, including:

(a) processing of account data; and

(b) electronic payment services

Securities transactions services

9 Arrangement, by a financial supply facilitator, of the provision, acquisition or disposal of an

interest in a security, including the following:

(a) order placement and trade execution;

(b) clearance and settlement of trades;

(c) management of the issue of securities, including rights and bonus issues;

(d) arranging flotations and privatisations;

(e) arranging mergers and acquisitions;

(f) arranging takeover bids;

(g) performing a settlement, including issue of drafts and encashment;

(h) other securities transactions, including lodgement, withdrawal and exchange control;

(i) underwriting, except a matter that is described in the table in subsection 115(3)

10 Securities and unit registry services to securities and unit issuers, including the following:

(a) managing portfolios of assets;

(b) allotting of share issues;

(c) making dividend payments;

(d) receiving applications for issue of shares;

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 180



Item Acquisition

(e) performing a redemption or capital repayment;

(f) placing scrip orders;

(g) bonus issues;

(h) scrip settlement;

(i) client account processing;

(j) transaction processing and recording;

(k) handling investor inquiries

Loans services

11 The following supplies by a financial supply facilitator:

(a) loan agency services;

(b) provision of a loan facility;

(c) mortgage broking;

(d) arranging syndicated loans;

(e) introducing and broking

12 Lenders mortgage and title insurance

13 Lenders mortgage reinsurance

14 Loan protection insurance

15 The following loan application, management and processing services:

(a) loan origination and brokerage;

(b) settlement and discharge of loans, including document preparation;

(c) registration of loan documents;

(d) credit reference assessment and credit scoring analysis;

(e) valuations;

(f) property title searches;

(g) registration and certification of titles;

(h) mortgage variations, including name changes;

(i) lodging and removing caveats to titles

16 The following loan management services:

(a) processing of repayments;

(b) statement preparation;

(c) filing and requisitioning of loan file records

Credit union services

17 Supply to a credit union by:

(a) an entity that is wholly owned by 2 or more credit unions; or

(b) an entity that is wholly owned by an entity mentioned in paragraph (a)

Debt collection services

18 The following debt collection services:

(a) debt recovery;

(b) litigation;

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 180



Item Acquisition

(c) lodgement of documents;

(d) management by a financial supply facilitator of the recovery of sums due by borrowers

Asset based finance services

19 Arrangement by a financial supply facilitator of hire purchase to which item 9 in the table

in subsection 115(3) applies

Trade finance services

20 Trade finance transaction processing and recording

21 Trade finance remittance services

Capital markets and financial instruments services

22 Arrangement by a financial supply facilitator of any of the following:

(a) the supply of a derivative or the currency of a foreign country, or an agreement to buy or

sell the currency;

(b) the sale of a forward contract;

(c) the supply of digital currency, or an agreement to buy or sell digital currency

23 Transaction processing, account maintenance and report generation services provided to

any of the following:

(a) suppliers of derivatives;

(b) suppliers of the currency of a foreign country, or an agreement to buy or sell the

currency;

(c) suppliers of digital currency, or an agreement to buy or sell digital currency

Funds management services

24 The following investment portfolio management functions, including those functions for

superannuation schemes:

(a) management of a client’s asset portfolio;

(b) management of an investment portfolio for a trust or superannuation fund;

(c) acting as a trustee of a trust or superannuation fund;

(d) acting as a single responsible entity;

(e) asset allocation services

25 The following administrative functions in relation to investment funds, including those

functions for superannuation schemes:

(a) maintaining member and employer and trustee records and associated accounting;

(b) processing of applications, contributions, benefits and distributions;

(c) processing transfers between funds and trusts;

(d) production of reports, statements and forms and distribution to members, employers and

trustees;

(e) handling of inquiries and complaints made by members;

(f) archives storage, retrieval and destruction services;

(g) statement processing and bulk mailing;

(h) compliance with industry regulatory requirements, excluding taxation and auditing

services;

(i) processing and assessing claims under life insurance policies

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 180



Item Acquisition

Insurance services

26 Brokerage of general or life insurance

27 The following life insurance administration services provided for a life insurer:

(a) maintaining policyholder records and associated accounting;

(b) processing of premiums and benefits;

(c) processing and assessing claims under policies;

(d) production of reports, statements and forms and distribution to policyholders, including

statement processing and bulk handling;

(e) handling of inquiries and complaints made by policyholders;

(f) archives storage, retrieval and destruction services;

(g) processing and assessing applications;

(h) compliance with industry regulatory requirements, excluding taxation and auditing

services;

(i) managing reinsurance requirements

Services remunerated by commission and franchise fees

28 Supplies for which financial supply facilitators are paid commission by financial supply

providers

29 Supplies provided by financial supply facilitators to franchisors, for which the facilitators

are paid a franchise fee

Trustee and custodial services

30 Trustee and custodial services (except safe custody of money, documents and other things),

including the following:

(a) transfer of cash without purchase, sale or transfer of assets, excluding cash delivery and

collection from branches of Australian ADIs;

(b) undertaking and settling of securities transactions by a financial supply facilitator;

(c) collecting income and other payments;

(d) registration of interests and rights;

(e) proxy voting;

(f) exercise of options and warrants;

(g) opening and maintaining accounts with Australian ADIs;

(h) nominee services in relation to financial supplies

31 The following master custody services:

(a) maintenance of accounting records;

(b) taxation reporting;

(c) mandate monitoring;

(d) trade execution monitoring;

(e) portfolio performance analysis;

(f) risk management reporting

32 Single responsible entity services

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 185



Item Acquisition

Supplies to recognised trust schemes

33 Supplies acquired by a recognised trust scheme, to the extent that the supplies acquired are

not:

(a) a supply by way of sale of goods or supply of real property made by:

(i) selling a freehold interest in land; or

(ii) selling a stratum unit; or

(iii) granting or selling a long-term lease; or

(b) a brokerage service covered by item 9 or 22; or

(c) a service covered by paragraph (a), (b) or (e) of item 24; or

(d) a service covered by paragraph (a), (b), (c), (d), (e), (f), (g) or (i) of item 25; or

(e) a custodial service covered by item 30; or

(f) a master custody service covered by item 31; or

(g) a monitoring or reporting service covered by item 34

Monitoring services

34 Monitoring and reporting services (other than taxation and auditing services) that are

required for compliance with the Anti-Money Laundering and Counter-Terrorism

Financing Act 2006

Note: These are reduced credit acquisitions: see subsection 70-5(1) of the Act.

(2) However, something that is used in making a reduced credit acquisition is not,

for that reason, a reduced credit acquisition.

Example 1: Information technology services used for brokerage services.

Example 2: Labour hire services used for life insurance administration services.

185 Acquisitions that attract reduced input tax credits: certain offshore supplies

(1) For the purposes of subsection 70-5(1) of the Act, an acquisition mentioned in

subsection (3) of this section that relates to making financial supplies can give

rise to an entitlement to a reduced input tax credit if:

(a) the supply or transfer that gives rise to the acquisition (the relevant supply)

consists of:

(i) the transfer of something to an enterprise in the indirect tax zone (a

receiving enterprise) from an enterprise outside the indirect tax zone

(a supplying enterprise); or

(ii) the doing of something for a receiving enterprise by a supplying

enterprise; and

(b) the relevant supply is a taxable supply because of section 84-5 of the Act

(including a supply that is not connected to the indirect tax zone because of

section 84-15 of the Act); and

(c) the receiving enterprise and the supplying enterprise are closely related.

(2) In determining the reduced credit acquisition, the price of the relevant supply is

reduced by the amount passed on by the supplying enterprise to the receiving

enterprise for any unabsorbed contribution.

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 185


(3) The acquisitions are set out in the following table.

Reduced credit acquisitions—certain offshore supplies

Item Acquisition

Senior executive management

1 Provision of senior management services, including the following:

(a) corporate strategy and development;

(b) investment strategy and performance measurement functions;

(c) profit or business centre performance support

2 Provision of support systems associated with the provision of senior management services

Human resources support

3 Provision of human resources support services, including the following:

(a) general advice and planning;

(b) recruitment assistance;

(c) compensation advice and management;

(d) training

4 Processing and maintenance of employee data and files

Corporate marketing and communications

5 Provision of corporate information and communication services

6 Provision of marketing administration and media support services

Financial management

7 Performance of financial management service functions, including the following:

(a) tax law compliance;

(b) corporate treasury operations;

(c) financial control (including statutory reporting and accounting policy);

(d) general ledger account reporting functions, including paying and processing invoices

and payment instructions;

(e) internal audit functions;

(f) management reporting systems;

(g) setting intrabank transfer pricing policy;

(h) corporate insurance;

(i) centralised payroll functions

Supply procurement and management

8 Process and management services for the procurement of supplies

Credit, operational and risk management

9 Establishment and application of credit policy

10 Development, establishment and application of policies, monitoring systems and procedures

to manage market and operational risk

11 Development and application of security processes related to fraud prevention

Relationship management

12 Provision of supervision, monitoring and management services in support of client

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 185


Reduced credit acquisitions—certain offshore supplies

Item Acquisition

relationships

In-house legal services

13 Provision of legal services, including:

(a) company secretary functions; and

(b) regulatory and legal compliance

Technology systems

14 Provision of systems development and computer programming services

15 Maintenance and operation of transaction processing systems (including communications

and applications systems)

16 Development and maintenance of disaster recovery systems

Business services

17 Provision of transport, security and mail services

18 Property management

(4) However, something that is used in making a reduced credit acquisition is not,

for that reason, a reduced credit acquisition.

Example 1: Consultant’s services used in the provision of recruitment services.

Example 2: Labour hire services used in the provision of security services.

(5) The performance by a third party, on behalf of the supplying enterprise or a

closely related enterprise of the supplying enterprise, of all or part of the relevant

supply is an unabsorbed contribution if:

(a) the amount paid or payable, or part of the amount paid or payable, by the

supplying enterprise for the performance is passed on by the supplying

enterprise to the receiving enterprise as part of the price of the relevant

supply; and

(b) the enterprise carried on by the third party is not closely related to the

supplying enterprise; and

(c) the thing that is involved in the performance by the third party retains, at

the time of the relevant supply, the substance and character that it had

when first purchased, for the purposes of the relevant supply, by the

supplying enterprise or an entity that carries on an enterprise that is closely

related to the supplying enterprise.

Example: For paragraph (c), legal advice that is given in the following circumstances is an

unabsorbed contribution:

(a) the advice is acquired by the supplying enterprise from a third party service provider as part of the provision of in-house legal services by the supplying enterprise to its 100% subsidiary in the indirect tax zone;

(b) the external legal service provider is not closely related to the supplying enterprise;

(c) the advice is passed on to the 100% subsidiary in the indirect tax zone by the supplying enterprise;

(d) the amount paid or payable for the advice is passed on to the 100% subsidiary in the indirect tax zone as part of the price that the supplying enterprise charges for the provision of in-house legal services.

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 190


190 Prohibition against claiming twice

To avoid doubt, an entity is not entitled to a reduced input tax credit under

sections 180 and 185 for the same acquisition.

195 Percentage to which input tax credits are reduced

For the purposes of subsection 70-5(2) of the Act, the percentage to which an

input tax credit is reduced is as follows:

(a) for a reduced credit acquisition covered by item 33 of the table in

subsection 180(1)—55%;

(b) for a reduced credit acquisition covered by item 33 and one or more other

items of the table in subsection 180(1):

(i) to the extent that the acquisition is covered by item 33—55%; and

(ii) to the extent that the acquisition is not covered by item 33—75%;

(c) for all other kinds of reduced credit acquisitions—75%.

EXPOSURE DRAFT

EXPOSURE DRAFT



Insurance Division 78

Section 200


Division 78—Insurance

200 Statutory compensation schemes

For the purposes of paragraph 78-105(c) of the Act, a scheme or arrangement

mentioned in column 1 of an item in the following table established under the

law mentioned in column 2 of the item is specified.

Statutory compensation schemes

Item Column 1

Scheme or arrangement

Column 2

Australian law

1 Commonwealth government employees

workers’ compensation insurance scheme

Safety, Rehabilitation and Compensation

Act 1988 (Cth)

2 ACT government employees workers’

compensation insurance scheme

Safety, Rehabilitation and Compensation

Act 1988 (Cth)

3 Rehabilitation and compensation scheme Safety, Rehabilitation and Compensation

(Defence-related Claims) Act 1988 (Cth)

4 Military rehabilitation and compensation

scheme

Military Rehabilitation and Compensation

Act 2004 (Cth)

5 NSW Treasury Managed Fund Government Insurance Office

(Privatisation) Act 1991 (NSW)

6 Sporting injuries insurance scheme Sporting Injuries Insurance Act 1978

(NSW)

Motor Accidents Compensation Act 1999

(NSW)

7 WorkCover scheme Workers Compensation Act 1987 (NSW)

Workplace Injury Management and

Workers’ Compensation Act 1998 (NSW)

8 General insurance schemes provided by the

Victorian Managed Insurance Authority

Victorian Managed Insurance Authority Act

1996 (Vic.)

9 Workers’ compensation insurance scheme Accident Compensation Act 1985 (Vic.)

Workers Compensation Act 1958 (Vic.)

Workplace Injury Rehabilitation and

Compensation Act 2013 (Vic.)

10 Statutory insurance scheme Queensland Building and Construction

Commission Act 1991 (Qld)

11 Workers’ compensation scheme Workers’ Compensation and Rehabilitation

Act 2003 (Qld)

12 Workers’ compensation scheme Workers’ Compensation and Injury

Management Act 1981 (WA)

13 RiskCover Fund Insurance Commission of Western Australia

Act 1986 (WA)

14 Workers’ rehabilitation and compensation

scheme

Return to Work Act 2014 (SA)

EXPOSURE DRAFT

EXPOSURE DRAFT



Division 78 Insurance

Section 200


Statutory compensation schemes

Item Column 1


Column 2

Australian law

15 Workers’ compensation insurance scheme Workers Rehabilitation and Compensation

Act 1988 (Tas.)

16 WorkCover scheme Workers Compensation Act 1951 (ACT)

17 Workers’ compensation insurance scheme Workers Compensation Act 1951 (ACT)

EXPOSURE DRAFT

EXPOSURE DRAFT



Compulsory third party schemes Division 79

Section 205


Division 79—Compulsory third party schemes

205 CTP ancillary payment or supply

For the purposes of paragraph 79-35(3)(b) of the Act, the following kinds of

payments are specified:

(a) a payment for medical treatment provided by a medical practitioner;

(b) a payment for surgical treatment provided by a medical practitioner;

(c) a payment for treatment provided by a registered nurse;

(d) a payment for dental treatment;

(e) a payment for hospital treatment;

(f) a payment for ambulance services;

(g) a payment for the conveyance of an injured person to obtain emergency

medical treatment;

(h) a payment for the cost of travel for a medical practitioner or registered

nurse to provide medical treatment;

(i) a payment made according to a bulk-billing arrangement under section 54

of the Motor Accidents Compensation Act 1999 (NSW).

Note: Under section 79-35 of the Act, the payments mentioned in this section must be made

under a compulsory third party scheme. Section 79-35 sets out other requirements in

relation to a CTP ancillary payment or supply.

EXPOSURE DRAFT

EXPOSURE DRAFT



Division 81 Payment of taxes, fees and charges

Section 210


Division 81—Payment of taxes, fees and charges

210 Fees and charges which constitute consideration

(1) Subject to section 220 of this instrument, for the purposes of subsection 81-10(2)

of the Act, the following kinds of Australian fee or charge are prescribed:

(a) a fee for parking a motor vehicle in a ticketed or metered parking space;

(b) a toll for driving a motor vehicle on a road;

(c) a fee for hire, use of, or entry to a facility, other than an entry fee to a

national park;

(d) a fee for the use of a waste disposal facility;

(e) a fee for pre-lodgement advice if:

(i) the advice relates to an application to which subsection 81-10(4) of

the Act applies; and

(ii) it is not compulsory to seek the advice;

(f) a fee or charge for the provision of information by an Australian

government agency if the provision of the information is of a

non-regulatory nature;

(g) a fee or charge for a supply of a non-regulatory nature;

(h) a fee or charge for a supply by an Australian government agency, where

the supply may also be made by a supplier that is not an Australian

government agency.

(2) Despite subsection (1), a fee or charge the payment of which is covered by

subsection 9-17(3) or (4) of the Act is not prescribed.

Note: Australian fee or charge is defined in section 195-1 of the Act.

215 Fees and charges which do not constitute consideration

Subject to section 220 of this instrument, for the purposes of section 81-15 of the

Act, payment of the following kinds of Australian fees and charges, or the

discharging of a liability to make such a payment, is not the provision of

consideration:

(a) a fee or charge for:

(i) the kerbside collection of waste; or

(ii) the supply, exchange or removal of bins or crates used in connection

with kerbside collection of waste;

(b) royalties charged in relation to natural resources;

(c) a fee or charge imposed on an industry to finance regulatory or other

government activities connected with the industry;

(d) a fee or charge to compensate an Australian government agency for costs

incurred by the agency in undertaking regulatory activities;

(e) a fee or charge imposed in relation to a court, tribunal, commission of

inquiry or sheriff’s office;

EXPOSURE DRAFT

EXPOSURE DRAFT



Payment of taxes, fees and charges Division 81

Section 220


(f) a fee or charge for a supply of a regulatory nature made by an Australian

government agency;

(g) a fee or charge for entry to a national park.

220 Fees and charges covered by sections 210 and 215

Fee or charge for a supply of a non-regulatory nature is not consideration if

covered by section 215

(1) For the purposes of section 81-15 of the Act, payment of, or the discharging of a

liability to pay, a fee or charge covered by both paragraph 210(1)(g) and

section 215 of this instrument is not the provision of consideration.

Other fees or charges covered by section 210 are consideration even if covered

by section 215

(2) Section 215 does not apply in relation to an Australian fee or charge covered by

subsection 210(1) (other than one covered by paragraph 210(1)(g)).

EXPOSURE DRAFT

EXPOSURE DRAFT


Part 4-7 Special rules mainly about returns, payments and refunds

Division 168 Tourist refund scheme

Section 225


Part 4-7—Special rules mainly about returns, payments and

refunds

Division 168—Tourist refund scheme

Subdivision 168-A—Kinds of acquisitions

225 Acquisition

For the purposes of paragraphs 168-5(1)(b) and (1A)(b) of the Act, an acquisition

that meets the requirements in this Subdivision is specified.

Note: Part of a person’s eligibility for the tourist refund scheme involves making an

acquisition:

(a) the supply of which is a taxable supply; and

(b) that is of a kind specified in this instrument.

230 Goods to which this Subdivision applies

This Subdivision applies to an acquisition of goods the supply of which is a

taxable supply, except any of the following goods:

(a) tobacco;

(b) tobacco products;

(c) alcoholic beverages, except wine on which wine tax is taken to have been

borne (within the meaning of section 31-10 of the Wine Tax Act);

(d) goods that have been partly consumed at the time at which the acquirer

leaves the indirect tax zone.

235 Registered entity

The goods must have been acquired from a registered entity.

240 Purchase price

(1) If one item has been acquired from a registered entity, the purchase price paid by

the acquirer must be at least $300.

(2) If 2 or more items have been acquired from the same registered entity, the total

purchase price paid by the acquirer for the items must be at least $300.

245 Tax invoice

(1) The acquisition may consist of one or more acquisitions from the same registered

entity for which the acquirer holds one or more tax invoices.

(2) Each acquisition must be accompanied by a tax invoice.

EXPOSURE DRAFT

EXPOSURE DRAFT


Special rules mainly about returns, payments and refunds Part 4-7

Tourist refund scheme Division 168

Section 250


Subdivision 168-B—Departure from the indirect tax zone

250 Leaving the indirect tax zone

For the purposes of paragraph 168-5(1)(c) and subparagraph 168-5(1A)(e)(ii) of

the Act, the circumstances in which the acquirer must leave the indirect tax zone

are specified in this Subdivision.

Note: Part of a person’s eligibility for the tourist refund scheme involves leaving the indirect

tax zone in circumstances specified in this instrument.

255 Departure

The acquirer must leave the indirect tax zone other than in the course of the

acquirer’s employment as:

(a) the person in charge or command of an aircraft or ship; or

(b) a member of the crew of an aircraft or ship.

260 Place of departure

The acquirer must leave the indirect tax zone at an airport, or seaport, at which

the tourist refund scheme is administered.

Subdivision 168-C—Export as accompanied baggage

265 Accompanied baggage

For the purposes of paragraph 168-5(1)(c) of the Act, the circumstances in which

the goods must be exported from the indirect tax zone as accompanied baggage

are specified in this Subdivision.

Note: Part of a person’s eligibility for the tourist refund scheme involves exporting goods

from the indirect tax zone as accompanied baggage in circumstances specified in this

instrument.

270 Time of export

The goods must be exported within 60 days after the day on which they were

acquired.

275 Verification of export

(1) The acquirer must present to an officer of Customs, on request, at a TRS

verification facility:

(a) the tax invoice relating to the goods; and

(b) as many of the following as are requested:

(i) the goods (unless subsection (4) applies);

(ii) the acquirer’s passport;

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 280


(iii) documents that confirm the acquirer’s entitlement to leave the indirect

tax zone on an aircraft or ship (for example, the acquirer’s boarding

pass or ticket).

(2) However, if a TRS verification facility enables an acquirer to lodge a claim for

payment, the acquirer may instead:

(a) complete a claim for payment; and

(b) include the acquirer’s tax invoice with the claim; and

(c) lodge the claim for payment at the TRS verification facility.

Note: A TRS verification facility may enable an acquirer to lodge a claim for payment, for

example, by placing the claim in a drop box facility.

Time for compliance

(3) The acquirer must comply with subsection (1) or (2):

(a) if the acquirer is leaving the indirect tax zone on an aircraft—at least 30

minutes before the aircraft’s scheduled departure time; or

(b) if the acquirer is leaving the indirect tax zone on a ship—at least 60

minutes before the ship’s scheduled departure time.

Note: The scheduled departure time of an aircraft or ship may change, for example, because

of a delay.

Requirements for checked in goods

(4) If the acquirer checks in the goods as accompanied baggage, the tax invoice must

be endorsed by an officer of Customs with a statement to the effect that the

goods have been checked in.

(5) The acquirer must request the endorsement mentioned in subsection (4):

(a) before presenting to an officer of Customs at a TRS verification facility;

and

(b) in the manner and form approved in writing by the Comptroller-General of

Customs.

Subdivision 168-D—Export by resident of an external Territory as

unaccompanied baggage

280 Export of goods to an external Territory

For the purposes of subparagraph 168-5(1A)(e)(ii) of the Act, the circumstances

in which the goods must be exported to an external Territory are specified in this

Subdivision.

Note: Part of a person’s eligibility for the tourist refund scheme involves exporting goods to

an external Territory other than as accompanied baggage in circumstances specified in

this instrument.

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 285


285 Time of export

The goods must be exported within 60 days after the day on which they were

acquired.

290 Verification of export

(1) The acquirer must present to an officer of Customs, on request, at a TRS


(a) the tax invoice relating to the goods; and

(b) documentary evidence that the acquirer is an individual to whom

paragraph 168-5(1A)(c) of the Act applies; and

(c) documentary evidence that:

(i) the goods have been exported to an external Territory; or

(ii) arrangements have been made for the exportation of the goods to an

external Territory within 60 days after the day on which the goods

were acquired.

(2) However, if a TRS verification facility enables an acquirer to lodge a claim for

payment, the acquirer may instead:

(a) complete a claim for payment; and

(b) include the following documents with the claim:

(i) the acquirer’s tax invoice;

(ii) documentary evidence referred to in paragraph (1)(b);

(iii) documentary evidence referred to in subparagraph (1)(c)(i) or (ii); and

(c) lodge the claim for payment at the TRS verification facility.

Note: A TRS verification facility may enable an acquirer to lodge a claim for payment, for

example, by placing the claim in a drop box facility.

Time for compliance

(3) The acquirer must comply with subsection (1) or (2):

(a) if the acquirer is leaving the indirect tax zone on an aircraft—at least 30

minutes before the aircraft’s scheduled departure time; or

(b) if the acquirer is leaving the indirect tax zone on a ship—at least 60

minutes before the ship’s scheduled departure time.

Note: The scheduled departure time of an aircraft or ship may change, for example, because

of a delay.

Requirements for evidence of export

(4) If the acquirer presents the evidence mentioned in subparagraph (1)(c)(ii),

documentary evidence that the goods have been exported to an external Territory

as described in that subparagraph must be given to the Comptroller-General of

Customs within 90 days after the day on which the goods were acquired.

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 295


Subdivision 168-E—Proportion of amount of GST for payment in cash

295 Cash payment

(1) For the purposes of paragraphs 168-5(1)(e) and (1A)(g) of the Act, this section

applies if:

(a) an amount of GST on a taxable supply is to be paid to an acquirer in cash;

and

(b) the amount of GST is not an exact multiple of 5 cents.

(2) The amount of GST is to be rounded up or down to the nearest exact multiple of

5 cents (rounding up if the amount is an exact multiple of 2.5 cents). The result is

the proportion of the amount of GST that is to be paid to the acquirer.

Subdivision 168-F—Documentation relating to entitlement to payment

300 Payment authority

(1) This section applies if:

(a) an acquirer complies with subsections 275(1) and (3) or subsections 290(1)

and (3) at the request of an officer of Customs; and

(b) the officer is satisfied that the acquirer is entitled to be paid an amount

under section 168-5 of the Act.

(2) The officer must give the acquirer a payment authority that includes:

(a) information identifying the acquirer; and

(b) the amount to which the acquirer is entitled.

Subdivision 168-G—Period and manner of payment

305 Processing payment authority given to officer of Customs at airport

(1) For the purposes of subsection 168-5(2) of the Act, this section applies if:

(a) an acquirer gives a payment authority to an officer of Customs at a TRS


(i) that is located at an airport; and

(ii) at which facilities exist for making cash payments; and

(b) the amount to be paid to the acquirer (including any amount payable to the

acquirer, in relation to the acquisition, under section 25-5 of the Wine Tax

Act) is $200 or less.

Note: Facilities for making cash payments to acquirers will only be available at some

airports, and will not be available at seaports.

(2) If it is practicable to pay cash to the acquirer, the amount must be paid to the

acquirer, in Australian currency, before the acquirer leaves the indirect tax zone.

(3) If it is not practicable to pay cash to the acquirer, an officer of Customs must

make arrangements for the acquirer to lodge the payment authority at a TRS

verification facility before leaving the indirect tax zone.

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 310


Example 1: A shortage of cash at the TRS verification facility.

Example 2: Passenger congestion that would make it unreasonable to pay cash to each acquirer

within the time available.

310 Processing payment authority lodged at a TRS verification facility

(1) For the purposes of subsection 168-5(2) of the Act, this section applies if an

acquirer:

(a) lodges a payment authority at a TRS verification facility when the acquirer

is leaving the indirect tax zone; and

(b) includes with the authority instructions for paying an amount to the

acquirer by:

(i) crediting the amount to a credit card account or an Australian bank

account; or

(ii) posting a cheque for the amount to a nominated address.

(2) The acquirer must be paid the amount in accordance with the instructions given

with the authority.

(3) The payment must be made within 60 days after the payment authority is lodged.

315 Processing payment authority given to Comptroller-General of Customs


(a) an acquirer posts a payment authority, from a place outside the indirect tax

zone, to the Comptroller-General of Customs; and

(b) the acquirer includes with the authority instructions for paying an amount

to the acquirer by:


account; or

(ii) posting a cheque for the amount to a nominated address; and

(c) the Comptroller-General of Customs receives the authority not later than

30 days after the day on which the payment authority was given to the

acquirer.


with the authority.

(3) The payment must be made within 60 days after the Comptroller-General of

Customs receives the payment authority.

320 Processing claim for payment


(a) an acquirer lodges a claim for payment in accordance with

subsections 275(2) and (3) or subsections 290(2) and (3); and

(b) the acquirer includes with the claim instructions for paying an amount to

the acquirer by:

EXPOSURE DRAFT

EXPOSURE DRAFT




Section 320



account; or

(ii) posting a cheque for the amount to a nominated address; and

(c) the Comptroller-General of Customs is satisfied that the acquirer is entitled

to be paid an amount under section 168-5 of the Act.


with the claim.

(3) The payment must be made within 60 days after whichever is the later of the

following:

(a) the day the Comptroller-General of Customs receives the claim;

(b) if the Comptroller-General of Customs asks the acquirer to give

information relating to the claim for payment—the day the

Comptroller-General receives the information.

EXPOSURE DRAFT

EXPOSURE DRAFT

Interpretation Chapter 6

Dictionary in the Act Part 6-3

Dictionary in the Act Division 195

Section 325


Chapter 6—Interpretation

Part 6-3—Dictionary in the Act

Division 195—Dictionary in the Act

325 Compulsory third party schemes

For the purposes of the definition of compulsory third party scheme in

section 195-1 of the Act, a scheme or arrangement mentioned in column 1 of an

item in the following table established under the law mentioned in column 2 of

the item is specified.

Compulsory third party schemes

Item Column 1


Column 2

Australian law

1 Compensation scheme for victims of motor

accidents

Motor Accidents Act 1988 (NSW)

Motor Accidents Compensation Act 1999

(NSW)

2 Compulsory third party transport accident

compensation scheme

Transport Accident Act 1986 (Vic.)

3 Statutory insurance scheme Motor Accident Insurance Act 1994 (Qld)

4 Compulsory third party insurance scheme Motor Vehicle (Third Party Insurance) Act

1943 (WA)

5 Third party insurance scheme Motor Vehicles Act 1959 (SA)

6 Motor accidents insurance scheme Motor Accidents (Liabilities and

Compensation) Act 1973 (Tas.)

7 Compulsory third party insurance scheme Road Transport (Third-Party Insurance) Act

2008 (ACT)

8 Motor accidents compensation scheme Motor Accidents (Compensation) Act (NT)

330 First aid or life saving course

(1) For the purposes of subparagraph (b)(vi) of the definition of first aid or life

saving course in section 195-1 of the Act, the following qualifications are

specified:

(a) a qualification that was specified for the purposes of that subparagraph by

the A New Tax System (Goods and Services Tax) Regulations 1999

immediately before their repeal;

(b) a qualification that:

(i) is provided under the VET Quality Framework (within the meaning of

the National Vocational Education and Training Regulator Act 2011)

by a registered training organisation; and

EXPOSURE DRAFT

EXPOSURE DRAFT

Chapter 6 Interpretation

Part 6-3 Dictionary in the Act

Division 195 Dictionary in the Act

Section 330


(ii) certifies the attainment of each competency mentioned in column 1 of

an item in the following table with a unit code mentioned in column 2

of the item.

First aid or life saving course competencies

Item Column 1

Competency

Column 2

Unit code

1 Respond to aquatic emergency using basic

water rescue techniques

(a) SISCAQU002; or

(b) SISCAQU202A; or

(c) SRCAQU003B; or

(d) SRCAQU003A

2 Instruct water familiarisation, buoyancy and

mobility skills

(a) SISCAQU008; or

(b) SISCAQU308A; or

(c) SRCAQU009B; or

(d) SRCAQU009A

3 Instruct water safety and survival skills (a) SISCAQU009; or

(b) SISCAQU309A; or

(c) SRCAQU010B; or

(d) SRCAQU010A

4 Instruct the strokes of swimming (a) SISCAQU010; or

(b) SISCAQU310A; or

(c) SRCAQU011B; or

(d) SRCAQU011A

(2) It is not necessary for a person to obtain certification of attainment of all the

competencies mentioned in column 2 of the table in subsection (1) from the same

registered training organisation.

EXPOSURE DRAFT

EXPOSURE DRAFT


Dictionary Part 6-4

Section 335


Part 6-4—Dictionary

335 Definitions

Note: A number of expressions used in this instrument are defined in the Act, including the

following:

(a) Comptroller-General of Customs;

(b) electronic payment;

(c) entity;

(d) family member;

(e) relevant traveller.

In this instrument:

account includes an account in relation to which the account holder (the

customer) has the right:

(a) to have the account maintained by the account provider (the provider); and

(b) to repayment of the amount credited to the account by the provider; and

(c) to require the provider to act on directions by the customer that are in

accordance with the arrangements, or any agreement, between the provider

and the customer in relation to operation of the account.

acquirer means a person who acquires goods the supply of which is a taxable

supply.

acquisition:

(a) has the meaning given in the Act; and

(b) in Division 40, also has a meaning affected by section 95.

Act means the A New Tax System (Goods and Services Tax) Act 1999.

approved entity means an entity with an approval under section 45 to make

deferred payments of assessed GST on taxable importations.

APRA means the Australian Prudential Regulation Authority.

associated person means:

(a) in relation to a partner in a partnership:

(i) if the partner is not an individual—the partner; and

(ii) if the partner is an individual—the partner or a family member of the

partner; or

(b) in relation to a shareholder in a company:

(i) if the shareholder is not an individual—the shareholder; and

(ii) if the shareholder is an individual—the shareholder or a family

member of the shareholder.

ATM means automatic teller machine.

EXPOSURE DRAFT

EXPOSURE DRAFT


Part 6-4 Dictionary

Section 335


Australian ADI has the meaning given by section 9 of the Corporations Act

2001.

barrier copy, in relation to an invoice, means the copy of the invoice that is

attached to the sealed package in which the goods to which the invoice relates

are enclosed when the goods are passed into the possession of the relevant

traveller.

charge card means an article, commonly known as a charge card, for use in

obtaining cash, goods or services by incurring a debt with the issuer of the card.

closely related: see section 175.

credit card:

(a) means an article commonly known as a credit card and any similar article

for use in obtaining cash, goods or services on credit; and

(b) includes an article commonly issued by persons conducting business to

their customers, or prospective customers, for use in obtaining goods or

services from the business on credit.

credit union means:

(a) an Australian ADI listed on the APRA website as a credit union; or

(b) an Australian ADI listed on the APRA website as an Australian-owned

bank that:

(i) on or before 1 July 2011 was listed on the APRA website as a credit

union; and

(ii) retains mutuality; and

(iii) was listed on the APRA website as a credit union at all times in the

period between 1 July 2011 and the time it was listed on the APRA

website as an Australian-owned bank; or

(c) the Cairns Penny Savings & Loans Limited (ACN 087 933 757).

Note: A list of Australian ADIs could in 2019 be viewed on APRA’s website

(https://www.apra.gov.au/).

customer copy, in relation to an invoice, means the copy of the invoice that is

placed inside the sealed package in which the goods to which the invoice relates

are enclosed when the goods are passed into the possession of the relevant

traveller.

debit card means an article intended for use by an entity in obtaining access to an

account held by the entity for the purpose of withdrawing or depositing cash or

obtaining goods or services.

derivative means an agreement or instrument the value of which depends on, or

is derived from, the value of assets or liabilities, an index or a rate.

disposal, of an interest, includes assignment, cancellation, redemption, transfer

and surrender of the interest.

family company, of an individual, means a company each shareholder of which

is either the individual or a family member of the individual.

EXPOSURE DRAFT

EXPOSURE DRAFT


Dictionary Part 6-4

Section 335


family trust, of an individual, means a trust that distributes income or capital of

the trust only to the individual or family members of the individual (whether or

not other distributions could lawfully be made).

financial supply facilitator: see section 105.

financial supply provider: see section 100.

fixed trust has the same meaning as in section 995-1 of the Income Tax

Assessment Act 1997.

incidental financial supply: see section 120.

interest means anything that is recognised at law or in equity as property in any

form.

LAG product means a liquid, aerosol, gel, cream or paste that is in a container

that has a capacity of more than 100 ml.

managed investment scheme has the meaning given by section 9 of the

Corporations Act 2001.

mortgage loan means a loan secured by a mortgage over real property.

mortgage scheme means a managed investment scheme that has at least 50% of

its non-cash assets invested in mortgage loans or in one or more other mortgage

schemes.

officer of Customs has the meaning given by subsection 4(1) of the Customs Act

1901.

participant, in a payment system, means a person who is a participant in the

system in accordance with the rules governing the operations of the system.

payment system means a funds transfer system that facilitates the circulation of

money or digital currency, including any procedures that relate to the system.

permitted beneficiary: see subsections 150(3), (4) and (5).

provision, of an interest, includes allotment, creation, grant and issue of the

interest.

receiving enterprise has the meaning given by subsection 185(1).

recognised trust scheme means a trust that has the following features:

(a) the entity that acts in the capacity of trustee or responsible entity of the

trust is carrying on, in its own capacity, an enterprise that includes making

taxable supplies to the trust;

(b) the trust is:

(i) a managed investment scheme, or part of a managed investment

scheme, other than a securitisation entity or a mortgage scheme; or

(ii) an approved deposit fund within the meaning of the Superannuation

Industry (Supervision) Act 1993; or

EXPOSURE DRAFT

EXPOSURE DRAFT


Part 6-4 Dictionary

Section 335


(iii) a pooled superannuation trust within the meaning of the

Superannuation Industry (Supervision) Act 1993; or

(iv) a public sector superannuation scheme within the meaning of the

Superannuation Industry (Supervision) Act 1993; or

(v) a regulated superannuation fund (other than a self managed

superannuation fund) within the meaning of the Superannuation

Industry (Supervision) Act 1993.

registered training organisation has the meaning given by section 3 of the

National Vocational Education and Training Regulator Act 2011.

related entity means:

(a) for an entity that is a member of a GST group—any other member of the

GST group; or

(b) for an entity that is a joint venture operator for a GST joint venture—any

other company that is a participant in the GST joint venture; or

(c) for an entity that has a GST branch—any GST branch the entity has; or

(d) for an entity that is a GST branch—the parent entity that has the GST

branch and any other GST branch the parent entity has.

securities has the meaning given by subsection 92(1) of the Corporations Act

2001.

securitisation entity means a trust that has the following features:

(a) the trust was established for the purpose of managing some or all of the

economic risk associated with assets, liabilities or investments (whether the

trust assumes the risk from another person or creates the risk itself);

(b) the total value of the debt interests (within the meaning of the Income Tax

Assessment Act 1997) in the trust is at least 50% of the total value of the

trust’s assets;

(c) the trust is recognised, or capable of being recognised, as an

insolvency-remote special purpose entity by an internationally recognised

rating agency.

seller includes an employee or agent of a seller.

shareholder of a company that is an unincorporated association means a member

of the association.

smart card means an article, commonly known as a smart card, that has the

capacity to keep a record of financial transactions using the article.

supplying enterprise has the meaning given by subsection 185(1).

tourist refund scheme means the arrangements set out in Division 168 of the

Act.

transaction card means a debit card, charge card, credit card or smart card.

TRS verification facility, in relation to an acquirer who is leaving the indirect tax

zone from an airport, or seaport, at which the tourist refund scheme is

EXPOSURE DRAFT

EXPOSURE DRAFT


Dictionary Part 6-4

Section 335


administered, means the place, at the airport or seaport, at which the scheme is

administered.

Note: The tourist refund scheme will not be administered at every airport and seaport in

Australia.

unabsorbed contribution: see subsection 185(5).

waste includes green waste and recyclables.

EXPOSURE DRAFT

EXPOSURE DRAFT

Chapter 7 Transitional

Part 7-1 Transitional matters

Division 197 Transitional matters relating to the repeal of the A New Tax System (Goods and Services

Tax) Regulations 1999

Section 340


Chapter 7—Transitional

Part 7-1—Transitional matters

Division 197—Transitional matters relating to the repeal of the A

New Tax System (Goods and Services Tax) Regulations 1999

340 Definitions

In this Division:

commencement time means the time this section commences.

old regulations means the A New Tax System (Goods and Services Tax)

Regulations 1999.

repealing regulations means the Treasury Laws Amendment (Goods and

Services Tax) Regulations 2019.

345 Old regulations continue to apply to tax periods starting before

commencement time

Despite the repeal of the old regulations by the repealing regulations, the old

regulations (other than Division 168 of the old regulations), as in force

immediately before the commencement time, continue to apply in relation to

working out net amounts for tax periods starting before the commencement time.

350 Approved forms

If:

(a) immediately before the commencement time, there was a form approved

under section 388-50 in Schedule 1 to the Taxation Administration Act

1953 for the purposes of a provision of the old regulations; and

(b) the form could be approved for the purposes of a corresponding provision

of this instrument;

the form has effect for the purposes of this instrument as if it had been approved

for the purposes of the corresponding provision of this instrument.

355 Deferred payments of assessed GST on taxable importations

Applications under the old regulations

(1) Despite the repeal of the old regulations by the repealing regulations,

regulations 33-15.02 to 33-15.05 and 33-15.09 of the old regulations, as in force

immediately before the commencement time, continue to apply in relation to any

application made under regulation 33-15.02 of the old regulations before the

commencement time.

EXPOSURE DRAFT

EXPOSURE DRAFT

Transitional Chapter 7

Transitional matters Part 7-1

Transitional matters relating to the repeal of the A New Tax System (Goods and Services Tax)

Regulations 1999 Division 197

Section 360


Approvals under the old regulations

(2) This instrument, other than section 55, has effect as if:

(a) an application had been approved under section 45 at the commencement

time in relation to each entity that was, immediately before the

commencement time, an approved entity within the meaning of the old

regulations; and

(b) an application approved after the commencement time under

regulation 33-15.03 of the old regulations as continued in effect under

subsection (1) had been approved under section 45 at the time of approval.

360 Tourist refund scheme

Despite the repeal of Division 168 of the old regulations by the repealing

regulations, that Division, as in force immediately before the commencement

time, continues to apply in relation to any acquisition of goods before the

commencement time.

EXPOSURE DRAFT

EXPOSURE DRAFT

Schedule 1 Rules for the supply of goods to a relevant traveller

Clause 1


Schedule 1—Rules for the supply of goods to a

relevant traveller Note: See section 85.

1 Purpose of this Schedule

This Schedule specifies rules for the supply of goods to a relevant traveller for

the purposes of item 7 of the table in subsection 38-185(1) of the Act.

2 Sealed bag rules

If:

(a) a relevant traveller takes possession of goods before presenting to an

officer of Customs as departing the indirect tax zone; and

(b) the goods are not LAG products;

the supply of the goods must be made in accordance with the requirements in

column 2 of an item in the following table and within the timeframe (if any) in

column 3 of the item.

Sealed bag rules

Item Column 1

Summary

Column 2

Requirements

Column 3

Timeframe

1 Seller to sight

travel

documents

The seller of the goods must sight:

(a) the relevant traveller’s ticket for

travel from the indirect tax zone to a

foreign country; or

(b) if the Commissioner is satisfied that

it is appropriate not to require a ticket

to be sighted, a document

satisfactory to the Commissioner that

provides evidence that the relevant

traveller is to travel from the indirect

tax zone to a foreign country

Before the relevant traveller

takes possession of the

goods

2 Relevant

traveller to sign

an SB

declaration

The relevant traveller must sign, and

retain a copy of, a declaration (SB

declaration) in the approved form

setting out:

(a) details of the relevant traveller, the

goods and the proposed journey; and

(b) a statement that the relevant traveller:

(i) intends departing the indirect

tax zone with the goods within

60 days after taking

possession; and

(ii) will not interfere with the

goods, the sealed package

(a) In relation to signing—

before the relevant

traveller takes possession

of the goods; and

(b) in relation to retaining a

copy—5 years

EXPOSURE DRAFT

EXPOSURE DRAFT

Rules for the supply of goods to a relevant traveller Schedule 1

Clause 2


Sealed bag rules

Item Column 1

Summary

Column 2

Requirements

Column 3

Timeframe

containing the goods or the

copies of the invoice relating

to the goods before

surrendering the sealed

package in accordance with

item 6 or 7; and

(iii) will, in accordance with

item 6 or 7, surrender the

sealed package for removal of

the barrier copy of the invoice;

and

(iv) is aware of the penalty for

making a false or misleading

statement

3 Seller to make

an invoice

The seller must make an invoice:

(a) in the form approved under clause 5;

and

(b) in triplicate; and

(c) containing a full description of the

goods; and

(d) containing any other information that

the form requires

At the time of the sale

4 Time is limited

within which

the relevant

traveller may

take possession

of the goods

The seller must pass possession of the

goods to the relevant traveller

After the start of the 60th

day before the date on which

the relevant traveller will

depart the indirect tax zone,

according to the ticket or

document sighted by the

seller before the relevant

traveller takes possession of

the goods

5 Relevant

traveller may

only take

possession of

goods in a

sealed package

The seller must not pass possession of

the goods to the relevant traveller unless:

(a) the goods are packaged in a manner

approved by the Commissioner in

writing; and

(b) the package is sealed by a method


writing so that the goods cannot be

removed from the package without

the seal being broken; and

(c) a copy of the invoice is attached to

the exterior of the package by a

method approved by the

Commissioner in writing; and

(d) a copy of the invoice is placed inside

EXPOSURE DRAFT

EXPOSURE DRAFT


Clause 2


Sealed bag rules

Item Column 1

Summary

Column 2

Requirements

Column 3

Timeframe

the package by a method that, if

possible, enables the invoice to be

read without need to break the seal of

the package

6 Invoice to be

retrieved at the

point of

surrender of

goods before

Australian

Border Force

border clearance

area

If, before the relevant traveller presents

to an officer of Customs as departing the

indirect tax zone, the relevant traveller

surrenders the sealed package to the

carrier with whom the relevant traveller

is to travel, the seller must retrieve the

barrier copy of the invoice

At the time when the

relevant traveller surrenders

the sealed package

7 Invoice to be

retrieved when

beyond the

Australian

Border Force

border clearance

area

If the relevant traveller has possession of

the package after presenting to an officer

of Customs as departing the indirect tax

zone, the relevant traveller must

surrender the sealed package to the seller

and the seller must retrieve the barrier

copy of the invoice

After the relevant traveller

presents to an officer of

Customs as departing the

indirect tax zone and before

departing on the flight or

voyage

8 Sealed package

to be examined

The seller must examine the sealed

package when dealing with it under

item 6 or 7 to ascertain whether it:

(a) remains sealed; or

(b) has been tampered with

Immediately before the

barrier copy of the invoice is

retrieved under item 6 or 7

9 Tampering or

other

discrepancy in

respect of sealed

package is to be

notified

The seller must notify the Commissioner

in the approved form if the seller

becomes aware that:

(a) the package is no longer sealed, or

has otherwise been tampered with; or

(b) the goods enclosed in the package

are not the goods described in the

customer copy of the invoice or the

barrier copy of the invoice, as the

case may be

As soon as is practicable

10 Retrieved

invoices must

be validated

The seller must validate the retrieved

barrier copy of the invoice by a method


writing


11 Invoices must

be matched

The seller must reconcile the retrieved

barrier copy of the invoice against the

seller’s copy of the invoice, by a method


writing


EXPOSURE DRAFT

EXPOSURE DRAFT


Clause 3


3 Sealed bag rules for liquids, aerosols, gels, creams and pastes

If:

(a) a relevant traveller takes possession of goods before presenting to an

officer of Customs as departing the indirect tax zone; and

(b) the goods are a LAG product;

the supply of the goods must be made in accordance with the requirements in

column 2 of an item in the following table and within the timeframe (if any) in

column 3 of the item.

Sealed bag rules

Item Column 1

Summary

Column 2

Requirements

Column 3

Timeframe

1 Seller to sight

travel

documents


(a) the relevant traveller’s ticket for

travel from the indirect tax zone to a

foreign country; or

(b) if the Commissioner is satisfied that

it is appropriate not to require a ticket

to be sighted, a document

satisfactory to the Commissioner that

provides evidence that the relevant

traveller is to travel from the indirect

tax zone to a foreign country



goods

2 Relevant

traveller to sign

an SB

declaration

The relevant traveller must sign, and

retain a copy of, a declaration (SB


setting out:



(b) a statement that the relevant traveller:

(i) intends departing the indirect

tax zone with the goods within

60 days after taking

possession; and

(ii) will remove the barrier copy

of the invoice, surrender the

sealed package and have the

barrier copy of the invoice

endorsed, as mentioned in

item 6; and

(iii) will not otherwise interfere

with the goods, the sealed

package containing the goods

or the copies of the invoice

relating to the goods before

surrendering the sealed

package in accordance with

item 6; and


before the relevant


of the goods; and


copy—5 years

EXPOSURE DRAFT

EXPOSURE DRAFT


Clause 3


Sealed bag rules

Item Column 1

Summary

Column 2

Requirements

Column 3

Timeframe

(iv) is aware of the penalty for

making a false or misleading

statement

3 Seller to make

an invoice

The seller must make an invoice:


and

(b) in triplicate; and


goods; and


the form requires


4 Time is limited

within which

the relevant

traveller may

take possession

of the goods

The seller must pass possession of the

goods to the relevant traveller

After the start of the 60th

day before the date on which

the relevant traveller will

depart the indirect tax zone,

according to the ticket or

document sighted by the

seller before the relevant

traveller takes possession of

the goods

5 Relevant

traveller may

only take

possession of

goods in a

sealed package

The seller must not pass possession of

the goods to the relevant traveller unless:

(a) the goods are packaged in a manner


writing; and

(b) the package is sealed by a method


writing so that the goods cannot be

removed from the package without

the seal being broken; and

(c) a copy of the invoice is attached to

the exterior of the package by a

method approved by the

Commissioner in writing; and

(d) a copy of the invoice is placed inside

the package by a method that, if

possible, enables the invoice to be

read without need to break the seal of

the package

6 Relevant

traveller to

remove invoice

The relevant traveller must:

(a) remove the barrier copy of the

invoice; and

(b) surrender the sealed package to the

carrier with whom the relevant

traveller is to travel; and

(c) request an officer of Customs to

Before presenting to an

officer of Customs as

departing the indirect tax

zone

EXPOSURE DRAFT

EXPOSURE DRAFT


Clause 4


Sealed bag rules

Item Column 1

Summary

Column 2

Requirements

Column 3

Timeframe

endorse the barrier copy of the

invoice with a statement to the effect

that the goods have been checked in

7 Seller to retrieve

invoice

The seller must retrieve the barrier copy

of the invoice

After the relevant traveller

surrenders the sealed

package

8 Tampering or

other

discrepancy in

respect of sealed

package is to be

notified

The seller must notify the Commissioner

in the approved form if the seller

becomes aware that:

(a) the package is no longer sealed, or

has otherwise been tampered with; or

(b) the goods enclosed in the package

are not the goods described in the

customer copy of the invoice or the

barrier copy of the invoice, as the

case may be; or

(c) the barrier copy of the invoice has

not been endorsed as mentioned in

item 6


9 Retrieved

invoices must

be validated

The seller must validate the retrieved

barrier copy of the invoice by a method


writing


10 Invoices must

be matched

The seller must reconcile the retrieved

barrier copy of the invoice against the

seller’s copy of the invoice, by a method


writing


4 Customs barrier rules

If a relevant traveller takes possession of goods after presenting to an officer of

Customs as departing the indirect tax zone, the supply of the goods must be

made in accordance with the requirements in column 2 of an item in the

following table and within the timeframe (if any) in column 3 of the item.

Customs barrier rules

Item Column 1

Summary

Column 2

Requirements

Column 3

Timeframe

1 Seller to sight

travel

documents


(a) either:

(i) the relevant traveller’s

boarding pass or ticket for

travel from the indirect tax



goods

EXPOSURE DRAFT

EXPOSURE DRAFT


Clause 5


Customs barrier rules

Item Column 1

Summary

Column 2

Requirements

Column 3

Timeframe

zone to a foreign country; or

(ii) if the Commissioner is

satisfied that it is appropriate

not to require a ticket or

boarding pass to be sighted, a

document satisfactory to the

Commissioner that provides

evidence that the relevant

traveller is to travel from the

indirect tax zone to a foreign

country; and

(b) a document satisfactory to the

Commissioner that provides evidence

that the relevant traveller presented

to an officer of Customs as departing

the indirect tax zone before taking

possession of the goods

2 Relevant

traveller may

have to sign a

CB declaration

If the relevant traveller pays for the

goods before presenting to an officer of

Customs as departing the indirect tax

zone, the relevant traveller must sign,

and retain a copy of, a declaration (CB


setting out:



(b) a statement that the relevant traveller

is aware of the penalty for making a

false or misleading statement


before the relevant


of the goods; and


copy—5 years

3 Seller to make

an invoice or

receipt

The seller must make an invoice or

receipt:


and

(b) in duplicate; and


goods; and


the form requires


5 Forms of invoice and receipt

For the purposes of item 3 of the tables in clauses 2, 3 and 4, the Commissioner

may, in writing, approve forms of invoice and receipt, including forms that

render obvious an alteration to, or deletion from, the contents of the invoice or

receipt.

EXPOSURE DRAFT

EXPOSURE DRAFT


Clause 6


6 Employees or agents may meet requirements

A requirement to be met by a seller under this Schedule may be met by action of

an employee or agent of the seller.

EXPOSURE DRAFT

EXPOSURE DRAFT

Schedule 2 Examples of financial supply

Clause 1


Schedule 2—Examples of financial supply Note: See section 125.

1 Examples for item 1 of the table in subsection 115(3)

A supply mentioned, or a supply of something mentioned, in the following table

that relates to the matter mentioned in item 1 of the table in subsection 115(3), or

to an incidental financial supply, is an example of a supply of an interest in or

under that matter, or of an incidental financial supply.

Accounts

Item Examples

1 Opening, keeping, operating, maintaining and closing of cheque, debit card, deposit and

savings accounts for account holders

2 Cash collection, handling and sorting for account holders by account providers

3 ATM, electronic and telephone operation of accounts

4 Supply of standard cheque and deposit books for account holders

5 Supply of debit and smart cards

6 Cashing cheques and payment orders

7 Preparation, reconciliation and replacement of account statements

8 Notification of dishonoured transactions and unpaid fees

9 Stopping payment of cheques

10 Operation of authorised overdraft facilities

11 Unauthorised usage of overdraft facilities

12 Retention and storage of vouchers

13 Making information about accounts available

14 Garnishee of accounts

15 Recovery of Commonwealth, State and Territory fees, duties and taxes

16 Audit confirmation of accounts

17 Electronic funds transfer

18 Money transfer for account holders

19 Making disbursements for account holders






EXPOSURE DRAFT

EXPOSURE DRAFT

Examples of financial supply Schedule 2

Clause 3


Debt and credit

Item Examples

1 Borrowing and lending, including establishing, maintaining and discharging loans

2 Opening, keeping, operating, maintaining and closing charge and credit card facilities

3 Supply of credit cards

4 Establishing, operating and terminating letters of credit

5 Right to an income stream under a securitisation arrangement

6 Recovery of Commonwealth, State and Territory fees, duties and taxes

7 Recovery of lenders mortgage insurance fees






Charges and mortgages

Item Examples

1 A mortgage over land or premises

2 A mortgage over a chattel

3 A charge over the assets of a company

4 Documentation or valuation of the collateral or security for a credit or an advance

5 A mortgage over a share or bond






Life insurance business

Item Examples

1 A contract of insurance that provides for the payment of money on the death of a person or

on the happening of a contingency dependent on the termination or continuance of human

life

2 A contract of insurance that is subject to payment of premiums for a term dependent on the

termination or continuance of human life

3 A contract of insurance for a term dependent on the termination or continuance of human

life that provides for the payment of an annuity

4 A contract that provides for the payment of an annuity for a term not dependent on the

continuance of a human life

5 A continuous disability policy within the meaning of section 9A of the Life Insurance Act

EXPOSURE DRAFT

EXPOSURE DRAFT


Clause 5


Life insurance business

Item Examples

1995

6 A contract (whether or not a contract of insurance) that constitutes an investment account

contract, or an investment-linked contract, within the meaning of section 14 of the Life

Insurance Act 1995






Guarantees

Item Examples

1 A surety bond that is a guarantee

2 A performance bond






Indemnities

Item Examples

1 An indemnity that is not a contract of insurance






Hire purchase

Item Examples

1 The amount of interest, and associated fees and charges, in respect of the credit component

under a hire purchase agreement entered into before 1 July 2012



that relates to the matter mentioned in item 10 of the table in subsection 115(3),

EXPOSURE DRAFT

EXPOSURE DRAFT

Examples of financial supply Schedule 2

Clause 9


or to an incidental financial supply, is an example of a supply of an interest in or


Currency

Item Examples

1 Foreign currency in cash form

2 Foreign currency drafts

3 Travellers cheques

4 International cheques

5 Collection, negotiation and endorsement of instruments (including cheques) for payment in

foreign currency, including message services

6 Forward contracts for transactions to buy or sell foreign currency

7 Options to buy or sell foreign currency

8 Conversion of Australian currency into foreign currency and conversion of foreign currency

into Australian currency






Securities

Item Examples

1 Bonds, stocks or debentures issued, or proposed to be issued, by a government entity

2 Shares in, or debentures or convertible notes of, a body

3 Subordinated notes

4 Structured notes

5 Units in a unit trust

6 Dealings in floating rate notes, commercial bills, commercial paper, extendable bill

investments and other financial instruments

7 Interests in a partnership

8 Promissory notes and bills of exchange

9 Bank cheques

10 Warrants

11 Securities lending






EXPOSURE DRAFT

EXPOSURE DRAFT


Clause 10


Derivatives

Item Examples

1 Forward contracts, futures contracts, swap contracts and options contracts the value of

which depends on, or is derived from:

(a) the price of debt securities or debt securities index values or interest rates; or

(b) foreign exchange or currency values or currency index values; or

(c) share or stock prices or equity index values; or

(d) credit spreads or credit events, including:

(i) default; and

(ii) other forms of financial distress; and

(iii) credit index values; or

(e) macroeconomic indicators or variables; or

(f) climatic events or indexes

2 Commodity derivatives that involve no option, right or obligation to delivery of the

commodity, such as electricity derivatives

3 Reciprocal repurchase agreements

4 Options over input taxed supply of precious metals

5 Securities lending agreements

6 Initial and variation margins in respect of exchange traded futures contracts

7 Cash settlement of a derivative over the counter or on the exchange rather than the physical

delivery of the underlying taxable assets

EXPOSURE DRAFT

EXPOSURE DRAFT

Examples of supply that is not financial supply Schedule 3

Clause 1


Schedule 3—Examples of supply that is not financial

supply Note: See section 135.

1 Examples for item 3 of the table in section 130


that relates to something mentioned in item 3 of the table in section 130 is an

example of a supply mentioned in that section.

Professional services

Item Examples

1 Advice by a legal practitioner in the course of professional practice

2 Advice by an accountant in the course of professional practice

3 Taxation advice, including preparation of tax returns

4 Actuarial advice

5 Rating services for securitisation vehicles





Payment systems

Item Examples

1 Supply of services by a payment system operator to a participant in the system for which

the following fees are charged by the operator:

(a) membership fees;

(b) processing fees;

(c) service fees;

(d) marketing fees;

(e) risk management fees;

(f) multi-currency fees

2 Access to a payment system, and supply of other related services by a participant in the

system to a third party

3 Supply of a service by one participant in a payment system to another participant in the

system in relation to charge, credit and debit card transactions

4 Processing, settling, clearing and switching transactions of the following kinds:

(a) direct credit and debit;

(b) other debit and credit transactions;

(c) charge, credit and debit card transactions;

EXPOSURE DRAFT

EXPOSURE DRAFT

Schedule 3 Examples of supply that is not financial supply

Clause 3


Payment systems

Item Examples

(d) cheque;

(e) electronic funds transfer;

(f) ATM;

(g) BPAY;

(h) internet banking;

(i) Bank@Post;

(j) SWIFT (Society for Worldwide Interbank Financial Telecommunications) Payment

Delivery System;

(k) an approved RTGS (real time gross settlement) system;

(l) Austraclear

5 Supply to a participant in a payment system by the operator of the system of the following

services:

(a) processing of account data;

(b) electronic payment services





Options, rights and obligations

Item Examples

1 Deliverable wool futures and forward contracts

2 Deliverable wheat futures and forward contracts

3 Options over a contract mentioned in item 1 or 2





Insurance and reinsurance

Item Examples

1 Health insurance provided as part of a health insurance business (within the meaning of

section 121-1 of the Private Health Insurance Act 2007)





EXPOSURE DRAFT

EXPOSURE DRAFT

Examples of supply that is not financial supply Schedule 3

Clause 6


Managing assets or liabilities

Item Examples

1 Managing the assets or liabilities of an entity

2 Acting as the trustee of an entity

3 Investment portfolio administration, including:

(a) maintaining account holder records and associated accounting; and

(b) processing of contributions and returns; and

(c) storage and retrieval of archives; and

(d) statement processing and bulk mailing





Trustee services

Item Examples

1 Acting as a trustee of a trust or other entity

2 Acting as a trustee under a will or settlement





Hire purchase

Item Examples

1 The credit component under a hire purchase agreement entered into on or after 1 July 2012

where the consideration is the amount of interest and associated fees and charges

a new tax system (goods and services tax) regulations 2019...a new tax system (goods and services...

Documents